New Capital Strengthens Steadiness Sheet and Prolonged Maturity Schedule Will increase Monetary Flexibility
All Properties Are Open, Serving Shoppers, and Prepared for the Vacation Season
PHILADELPHIA, Dec. 11, 2020 /PRNewswire/ — PREIT (NYSE: PEI), a number one operator of numerous retail and experiential locations, as we speak introduced it has efficiently accomplished its monetary restructuring and emerged from Chapter 11 following an expedited course of.
In keeping with earlier bulletins, PREIT now has entry to as much as $130 million of latest capital to assist its operations and proceed advancing its strategic priorities. Along with recapitalizing its enterprise, PREIT’s debt maturity schedule has been prolonged, offering the Firm with enhanced monetary flexibility.
All through the restructuring course of, PREIT has continued operations as traditional and met all obligations to tenants, suppliers and the communities wherein it operates. As well as, suppliers and different commerce collectors and enterprise companions have been unimpaired, and all suppliers and workers have been, and can proceed to be, paid in full. The Firm’s frequent inventory will proceed to commerce on the New York Inventory Change (NYSE) below the identical ticker image PEI. Shifting ahead, PREIT will proceed to supply distinctive retail and experiential locations because it strikes to remodel its portfolio of bullseye places in excessive barrier-to-entry markets into multi-use sustainable districts incorporating an array of latest makes use of, whereas prioritizing the well being and security of its workers, companions, clients and communities.
“We have now considerably strengthened the Firm because of the overwhelming assist of our monetary stakeholders, in addition to our workers, clients, communities and enterprise companions,” mentioned Joseph F. Coradino, CEO of PREIT. “Having shortly and effectively accomplished our monetary restructuring, PREIT is now a extra resilient firm with further assets and monetary flexibility to proceed delivering terrific experiences for customers and excellent service for our retail companions. PREIT has a historical past of being a first-mover in adapting to new developments in retail and can proceed to remain forward of the rising ideas and makes use of throughout our portfolio.”
Coradino continued, “On behalf of all of us at PREIT, I thank our tenants, suppliers, and different enterprise companions for his or her assist all through this course of. I’m additionally deeply grateful to our devoted workers for his or her laborious work and unwavering dedication to working safely, delivering nice experiences and executing our successful technique.”
DLA Piper LLP (US) LLP, Faegre, Drinker, Biddle & Reath LLP and Wachtell, Lipton, Rosen & Katz are serving as authorized counsel and PJT Companions LP is serving as monetary advisor to PREIT.
PREIT (NYSE:PEI) is a publicly traded actual property funding belief that owns and manages progressive properties on the forefront of shaping client experiences by way of the constructed atmosphere. PREIT’s strong portfolio of rigorously curated retail and way of life choices combined with vacation spot eating and leisure experiences are situated primarily in densely-populated, excessive barrier-to-entry markets with super alternative to create vibrant multi-use locations. Further data is obtainable at www.preit.com or on Twitter, Instagram or LinkedIn.
Ahead Trying Statements
This press launch comprises sure forward-looking statements that may be recognized by means of phrases akin to “anticipate,” “imagine,” “estimate,” “anticipate,” “challenge,” “intend,” “could” or related expressions. Ahead-looking statements relate to expectations, beliefs, projections, future plans, methods, anticipated occasions, developments and different issues that aren’t historic details. These forward-looking statements mirror our present expectations and assumptions relating to our enterprise, the economic system and different future occasions and circumstances and are primarily based on presently accessible monetary, financial and aggressive knowledge and our present enterprise plans. Precise outcomes may range materially relying on dangers, uncertainties and adjustments in circumstances that will have an effect on our operations, markets, companies, costs and different components as mentioned within the Threat Components part of our different filings with the Securities and Change Fee. Whereas we imagine our assumptions are affordable, we warning you in opposition to counting on any forward-looking statements as it is extremely tough to foretell the affect of identified components, and it’s unattainable for us to anticipate all components that would have an effect on our precise outcomes. Necessary components that would trigger precise outcomes to vary materially from these within the forward-looking statements embody, however aren’t restricted to, our skill to realize our forecasted income and professional forma leverage ratio and generate free money stream to additional cut back our indebtedness; our skill to handle our enterprise by way of the impacts of the COVID-19 pandemic, a weakening of world financial and monetary circumstances, adjustments in governmental rules and associated compliance and litigation prices and the opposite components listed in our SEC filings. Moreover, our enterprise is perhaps materially and adversely affected by adjustments within the retail and actual property industries, together with consolidation and retailer closings, notably amongst anchor tenants; present financial circumstances, together with the affect of the COVID-19 pandemic and the steps taken by governmental authorities and different third events to cut back its unfold, and the corresponding results on tenant enterprise efficiency, prospects, solvency and leasing choices; our lack of ability to gather lease because of the chapter or insolvency of tenants or in any other case; our skill to keep up and enhance property occupancy, gross sales and rental charges; will increase in working prices that can’t be handed on to tenants; the consequences of on-line buying and different makes use of of know-how on our retail tenants; dangers associated to our growth and redevelopment actions, together with delays, price overruns and our lack of ability to succeed in projected occupancy or rental charges; acts of violence at malls, together with our properties, or at different related areas, and the potential impact on visitors and gross sales; our skill to promote properties that we search to get rid of or our skill to acquire costs we search; our substantial debt and the liquidation desire of our most popular shares and our excessive leverage ratio and our skill to stay in compliance with our monetary covenants below our debt amenities; our skill to refinance our current indebtedness when it matures, on favorable phrases or in any respect; our skill to boost capital, together with by way of gross sales of properties or pursuits in properties and thru the issuance of fairness or equity-related securities if market circumstances are favorable; and potential dilution from any capital elevating transactions or different fairness issuances.
Further components that may trigger future occasions, achievements or outcomes to vary materially from these expressed or implied by our forward-looking statements embody these mentioned herein, and within the sections entitled “Merchandise 1A. Threat Components” in our Annual Report on Kind 10-Ok for the 12 months ended December 31, 2019 and in our Quarterly Report on Kind 10-Q for the quarterly interval ended September 30, 2020. We don’t intend to replace or revise any forward-looking statements to mirror new data, future occasions or in any other case.
EVP, Technique and Communications
Andrew Siegel / Meaghan Repko
Joele Frank Wilkinson Brimmer Katcher
View authentic content material to obtain multimedia:http://www.prnewswire.com/news-releases/preit-successfully-completes-financial-restructuring-301190970.html