General Growth Announces Receipt of Lender Consents to Extend Forbearance under 2006 Senior Credit Agreement & Extension of E...
March 16 2009 - 9:58PM
Business Wire
General Growth Properties, Inc. (NYSE:GGP) (the �Company�)
announced today the administrative agent under the Company�s 2006
Senior Credit Agreement received consents from the requisite
lenders thereunder to waive certain identified events of default
under the 2006 Senior Credit Agreement and to forbear from
exercising certain of the lenders� default related rights and
remedies with respect to such identified events of default until
December 31, 2009 (unless terminated earlier in accordance with the
terms of such forbearance agreement), subject to certain
conditions, including final documentation.
The Company also announced today its subsidiary, The Rouse
Company LP (�TRCLP�), has extended the expiration date for its
previously announced consent solicitation to 5:00 p.m., New York
City time, on March 20, 2009. In the solicitation, TRCLP is seeking
consents from the holders of TRCLP�s unsecured notes (five series
with an aggregate outstanding principal amount of approximately
$2.25 billion at December 31, 2008) (the �TRCLP Notes�) to forbear
from exercising remedies with respect to various payment and other
defaults under the TRCLP Notes through December 31, 2009.
The Company also noted that it has been informed by the
representatives of an ad hoc committee of holders of TRCLP Notes,
the members of which hold in the aggregate approximately 41% of
TRCLP Notes, that all of the members of the ad hoc committee have
committed to consent to the forbearance.
As of 5:00 p.m. on March 16, 2009, consents had been validly
delivered (and not validly revoked) with respect to the following
amounts of TRCLP Notes:
� 3.625% Notes due 2009: � � $ 163,897,000 (41.5%) 8% Notes due
2009: $ 117,591,000 (58.8%) 7.20% Notes due 2012: $ 329,869,000
(82.5%) 5.375% Notes due 2013: $ 310,419,000 (69.0%) 6 3/4% Notes
due 2013: $ 593,272,000 (75.4%)
The minimum acceptance levels for each series of the TRCLP Notes
are: 90% of the 3.625% Notes due 2009 and the 8% Notes due 2009;
75% of the 7.20% Notes due 2012, the 5.375% Notes due 2013 and the
6 3/4% Notes due 2013. Holders of TRCLP Notes who have previously
validly delivered consents will continue to have the right to
revoke their consents through the extended expiration date.
Effectiveness of the forbearance under the 2006 Senior Credit
Agreement will be conditioned on and subject to, among other
things, the successful completion of the consent solicitation and
effectiveness of the forbearance agreement relating to the TRCLP
Notes.
�We are pleased that we have been able to obtain consents from
the requisite lenders under our 2006 Senior Credit Agreement and
with the positive reaction to the TRCLP bond consent solicitation,�
said Adam Metz, chief executive officer. �Given this support, we
feel it is appropriate to extend the expiration date for the
consent solicitation in order to give bondholders more time to
receive and review the consent solicitation materials and to
consider this request.�
GGP INFORMATION
General Growth is a U.S. based, publicly traded Real Estate
Investment Trust. The Company currently has an ownership interest
in, or management responsibility for, more than 200 regional
shopping malls in 44 states, as well as ownership in master planned
community developments and commercial office buildings. The Company
portfolio totals approximately 200 million square feet of retail
space and includes over 24,000 retail stores nationwide. The
Company is listed on the New York Stock Exchange under the symbol
GGP.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual
results may differ materially from the results suggested by these
forward-looking statements, for a number of reasons, including, but
not limited to, a potential bankruptcy filing, our ability to
refinance, extend or repay our near and intermediate term debt, our
substantial level of indebtedness and interest rates, retail and
credit market conditions, impairments, land sales in the Master
Planned Communities segment, the cost and success of development
and re-development projects and our ability to successfully manage
our strategic and financial review and our liquidity demands.
Readers are referred to the documents filed by General Growth
Properties, Inc. with the Securities and Exchange Commission, which
further identify the important risk factors that could cause actual
results to differ materially from the forward-looking statements in
this release. The Company disclaims any obligation to update any
forward-looking statements.
This press release is not an offer of securities for sale or an
offer to purchase securities or a solicitation of consents. The
consent solicitation is being made by means of a Consent
Solicitation Statement that may be obtained by contacting Financial
Balloting Group LLC, which is acting as the Information Agent for
the Consent Solicitation, at (646) 282-1800.
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