Moody's Confirms Chelsea's Ratings and Revises Outlook to Positive; CPG Partners Sells $150 Million of Notes

Business Wire, Dec 11, 2002

Business Editors

ROSELAND, N.J.--(BUSINESS WIRE)--Dec. 11, 2002

Chelsea Property Group, Inc. (NYSE: CPG) announced today that Moody's Investors Service confirmed the Company's ratings (senior debt at Baa3) and revised its outlook to positive from stable.

This follows a similar affirmation (senior debt at BBB-) and outlook revision to positive by Standard & Poor's Rating Services on September 17, 2002.

Chelsea also announced today that its principal operating partnership, CPG Partners, L.P., completed the issuance of $150 million of 6.00% senior unsecured notes due January 15, 2013. Wachovia Securities, Inc. acted as sole bookrunner and joint lead manager, Merrill Lynch & Co. as joint lead manager, and Commerzbank Capital Markets Corp. and Fleet Securities, Inc. as co-managers of the offering.

The notes were priced at 98.656% of par value to yield 6.18%. Proceeds will be used to partially fund the previously announced $193 million transaction to acquire four outlet centers from New Plan Excel Realty Trust, Inc. (NYSE: NXL), repay bank borrowings and for general corporate purposes.

Chelsea Property Group, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that wholly or partially owns 55 Premium Outlet(TM) and other shopping centers - containing approximately 13.0 million square feet of gross leasable area - in 30 states and Japan. The company's leading properties include Woodbury Common Premium Outlets, near New York City; Orlando Premium Outlets, in Orlando, Florida; Desert Hills Premium Outlets, near Palm Springs, California; Wrentham Village Premium Outlets, near Boston; and Gotemba Premium Outlets, near Tokyo, Japan. Please see www.cpgi.com for more information.