CBL Properties and Required Consenting Noteholders Further Extend Petition Deadline to November 2, 2020
October 14 2020 - 4:15PM
Business Wire
CBL Enters
Grace Period for 2024 Notes Interest Payment
CBL Properties (NYSE:CBL) today announced that the Petition Date
under the Restructuring Support Agreement (the “RSA”) has been
extended from October 15, 2020 to November 2, 2020. The RSA was
entered into on August 18, 2020, with certain beneficial owners
and/or investment advisors or managers of discretionary funds,
accounts, or other entities (the “Noteholders”) representing in
excess of 60%, including joining noteholders added pursuant to
joinder agreements, of the aggregate principal amount of the
Operating Partnership’s 5.25% senior unsecured notes due 2023 (the
“2023 Notes”), the Operating Partnership’s 4.60% senior unsecured
notes due 2024 (the “2024 Notes”) and the Operating Partnership’s
5.95% senior unsecured notes due 2026 (the “2026 Notes” and
together with the 2023 Notes and the 2024 Notes, the “Unsecured
Notes”).
The Company is continuing collaborative negotiations with its
senior, secured lenders and the Noteholders to attempt to reach a
consensual arrangement with both parties. In the event that such an
arrangement were reached, the Company and the Noteholders would
amend the RSA to include its senior, secured lenders. The agreement
may be amended by the Company and with the consent of noteholders
representing at least 75% of the Unsecured Notes that are held by
noteholders that are party to the RSA.
As discussions with its lenders continue, the Company has
elected to not make the $6.9 million interest payment due and
payable on October 15, 2020, with respect to the 2024 Notes. Under
the indenture governing the 2024 Notes, the Operating Partnership
has a 30-day grace period to make the Interest Payment before the
nonpayment is considered an “event of default” with respect to the
2024 Notes.
The latest information on CBL’s restructuring, including news
and frequently asked questions, can be found at
cblproperties.com/restructuring.
No Solicitation or Offer
Any new securities to be issued pursuant to the restructuring
transactions may not be registered under the Securities Act of
1933, as amended (the “Securities Act”), or any state securities
laws but may be issued pursuant to an exemption from such
registration provided in the U.S. bankruptcy code. Such new
securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and any applicable state
securities laws. This press release does not constitute an offer to
sell or buy, nor the solicitation of an offer to sell or buy, any
securities referred to herein, nor is this press release a
solicitation of consents to or votes to accept any Chapter 11 plan.
Any solicitation or offer will only be made pursuant to a
confidential offering memorandum and disclosure statement and only
to such persons and in such jurisdictions as is permitted under
applicable law.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s portfolio is comprised of
108 properties totaling 68.2 million square feet across 26 states,
including 68 high‑quality enclosed, outlet and open-air retail
centers and 9 properties managed for third parties. CBL seeks to
continuously strengthen its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information, visit cblproperties.com.
Information included herein contains “forward-looking
statements” within the meaning of the federal securities laws. Such
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual events, financial
and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed
to the Company’s various filings with the Securities and Exchange
Commission, including without limitation the Company’s Annual
Report on Form 10-K and the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” included therein,
for a discussion of such risks and uncertainties.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201014005948/en/
Investor Contact: Katie Reinsmidt, Executive Vice President
& Chief Investment Officer, 423.490.8301,
Katie.Reinsmidt@cblproperties.com Media Contact: Stacey Keating,
Senior Director – Public Relations & Corporate Communications,
423.490.8361, Stacey.Keating@cblproperties.com
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