Scribd Logo
Upload

Welcome to Scribd!

  • 17K views

    CBL RSA - Bond Only - F

    Uploaded by

    Joseph Gill
    CBL Properties entered into a restructuring support agreement with noteholders representing over 57% of unsecured notes to strengthen its balance sheet. The agreement includes eliminating $900M of debt and $600M of preferred stock obligations in exchange for $500M of new secured notes, $50M of cash, and 90% of new common stock. This comprehensive restructuring plan will significantly reduce CBL's leverage, extend debt maturities, lower interest costs, and position the company for long-term growth while maintaining normal business operations.

    Copyright:

    © All Rights Reserved

    CBL RSA - Bond Only - F

    Uploaded by

    Joseph Gill
    17K views2 pages
    CBL Properties entered into a restructuring support agreement with noteholders representing over 57% of unsecured notes to strengthen its balance sheet. The agreement includes eliminating $900M of debt and $600M of preferred stock obligations in exchange for $500M of new secured notes, $50M of cash, and 90% of new common stock. This comprehensive restructuring plan will significantly reduce CBL's leverage, extend debt maturities, lower interest costs, and position the company for long-term growth while maintaining normal business operations.

    Original Description:

    CBL RSA_Bond Only_F

    Original Title

    CBL RSA_Bond Only_F

    Copyright

    © © All Rights Reserved

    Did you find this document useful?

    Is this content inappropriate?

    CBL Properties entered into a restructuring support agreement with noteholders representing over 57% of unsecured notes to strengthen its balance sheet. The agreement includes eliminating $900M of debt and $600M of preferred stock obligations in exchange for $500M of new secured notes, $50M of cash, and 90% of new common stock. This comprehensive restructuring plan will significantly reduce CBL's leverage, extend debt maturities, lower interest costs, and position the company for long-term growth while maintaining normal business operations.

    Copyright:

    © All Rights Reserved
    17K views2 pages

    CBL RSA - Bond Only - F

    Uploaded by

    Joseph Gill
    CBL Properties entered into a restructuring support agreement with noteholders representing over 57% of unsecured notes to strengthen its balance sheet. The agreement includes eliminating $900M of debt and $600M of preferred stock obligations in exchange for $500M of new secured notes, $50M of cash, and 90% of new common stock. This comprehensive restructuring plan will significantly reduce CBL's leverage, extend debt maturities, lower interest costs, and position the company for long-term growth while maintaining normal business operations.

    Copyright:

    © All Rights Reserved
    of 2

    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

    CBL PROPERTIES ENTERS INTO RESTRUCTURING SUPPORT AGREEMENT WITH NOTEHOLDERS TO


    SIGNIFICANTLY STRENGTHEN ITS CAPITAL STRUCTURE

    Approximately $900 million of Debt and at Least $600 Million of Other Obligations to be Eliminated
    and Maturity Schedule Significantly Lengthened

    Highly Experienced and Dedicated Leadership Team to Continue to Lead CBL

    CHATTANOOGA, Tenn. (August 19, 2020) – CBL Properties (NYSE:CBL) today announced that the Company
    has entered into a Restructuring Support Agreement (the “RSA”) with certain beneficial owners and/or
    investment advisors or managers of discretionary funds, accounts, or other entities (the “noteholders”)
    representing in excess of 57% 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 terms of the RSA provide for a comprehensive restructuring of the Company’s balance sheet (the
    “Plan”) through an in-court process contemplated to commence no later than October 1, 2020. The
    Company intends to continue collaborative negotiations with its senior, secured lenders in the meantime
    to attempt to reach a consensual arrangement with those lenders. In the event that such an arrangement
    were reached, the Company 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.

    The Plan would eliminate the approximately $1.4 billion principal amount of Unsecured Notes in exchange
    for the issuance of $500 million of new senior secured notes due June 2028, approximately $50 million of
    cash and approximately 90% of the new common equity of the Company to holders of the Unsecured
    Notes. As a result, the Plan, if implemented, will result in the elimination of approximately $900 million of
    debt, extension of the Company’s debt maturity schedule and a reduction in annual interest expense of
    more than $20 million. The Plan also contemplates eliminating the Company’s more than $600 million
    obligation on its preferred stock in exchange for new common equity and warrants. In sum, the Plan will
    provide the Company with a significantly stronger balance sheet by reducing total debt, extending debt
    maturities and increasing liquidity while minimizing operational disruptions.

    Through this process, all day-to-day operations and business of the Company’s wholly owned, joint
    venture and third-party managed shopping centers will continue as normal. CBL’s customers, tenants and
    partners can expect business as usual at all of CBL’s owned and managed properties.

    “Reaching this agreement with our noteholders is a major milestone for CBL,” said Stephen D. Lebovitz,
    Chief Executive Officer of CBL. “The agreement will significantly improve our balance sheet by reducing
    leverage and increasing net cash flow and will simplify our capital structure, providing enhanced financial
    flexibility going forward.

    -MORE-
    CBL Properties Enters Into Restructuring Support Agreement With Noteholders To Significantly
    Strengthen Its Capital Structure
    Page 2
    August 19, 2020

    “We also appreciate the confidence in the CBL organization and leadership team shown by the
    noteholders as we’ve worked collaboratively to find a solution that benefits all company stakeholders.
    Our goal is for this process to proceed as smoothly and as quickly as possible with no disruption to CBL’s
    operations. Once the process is complete, we will emerge as a stronger and more stable company, with
    an enhanced ability to execute on our key strategies of diversifying our sources of revenue and
    transforming our properties from traditional enclosed malls to suburban town centers. As a result, we will
    be better positioned to grow our business over the near and long term.”

    CBL currently has approximately $220 million in cash on hand and available for sale securities. The
    Company’s cash position, combined with positive cash flow generated by ongoing operations, is expected
    to be sufficient to meet CBL’s operational and restructuring needs.

    Certain subsidiaries, including CBL’s joint ventures and CBL’s special purpose entities holding properties
    that secure mortgage loans, are not contemplated to be included as part of the in-court process. CBL
    anticipates continuing to meet all debt service and other obligations, as required, under its property level
    secured loans and joint venture partnerships.

    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.

    -END-

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy