The Macerich Company (MAC), a leading real estate investment trust (REIT), has recently paid off $446 million term notes that were scheduled to mature in 2010 by utilizing operating cash and proceeds from asset sales.

Macerich utilized the proceeds from joint venture asset sales ($275 million) to repay the bulk of the debt, while the balance was repaid by utilizing operating cash retained by paying 90% of the dividend in stock. At the same time, the company closed an $85 million loan collateralized by Paradise Valley Mall in Phoenix, Arizona. The loan, initially taken for a period of three years, can be extended to five years.