Seritage Growth Properties Announces Amendment to Senior Secured Term Loan Agreement
November 29 2021 - 6:30AM
Business Wire
Provides Seritage Ability to Prepay Loan and
Opportunity to Extend Maturity Date Until July 2025, Subject to
$800 Million of Prepayments
Seritage Growth Properties (NYSE: SRG) (the “Company”), a
national owner and developer of 170 retail, residential and
mixed-use properties, today announced an amendment to Seritage
Growth Properties L.P.’s and the Company’s Senior Secured Term Loan
Agreement (the “Agreement”) with Berkshire Hathaway Life Insurance
Company of Nebraska for the $1.6 billion term loan facility
previously announced on July 31, 2018.
Under the terms of the amendment, the companies mutually agreed
that the “make whole” provision of the Agreement shall not be
applicable to prepayments of the term loan facility’s principal.
Additionally, the companies agreed that, at Seritage’s election,
the Agreement may be extended for two years from the July 31, 2023
maturity date (the “Maturity Date”) to July 31, 2025 provided that
the term loan facility’s principal has been reduced to $800 million
by the Maturity Date.
In all other respects, the Agreement remains unchanged.
About Seritage Growth Properties
Seritage is principally engaged in the ownership, development,
redevelopment, management and leasing of diversified and mixed-use
properties throughout the United States. As of September 30, 2021,
the Company’s portfolio consisted of interests in 170 properties
comprised of approximately 10.0 million square feet of GLA or
build-to-suit leased area (approximately 8.0 million at share),
approximately 4.0 million of which is held by unconsolidated
entities (approximately 2.0 million at share), approximately 600
acres held for or under development and approximately 10.0 million
square feet of GLA or approximately 850 acres to be disposed
of.
Forward-Looking Statements
This document contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases,
you can identify forward-looking statements by the use of
forward-looking terminology such as “may,” “should,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” or “potential” or the negative of these words and
phrases or similar words or phrases that are predictions of or
indicate future events or trends and that do not relate solely to
historical matters. Forward-looking statements involve known and
unknown risks, uncertainties, assumptions and contingencies, many
of which are beyond the Company’s control, which may cause actual
results to differ significantly from those expressed in any
forward-looking statement. Factors that could cause or contribute
to such differences include, but are not limited to: declines in
retail, real estate and general economic conditions; the impact of
ongoing negative operating cash flow on the Company’s ability to
fund operations and ongoing development; the impact of the COVID-19
pandemic on the business of the Company’s tenants and the Company’s
business, income, cash flow, results of operations, financial
condition, liquidity, prospects, ability to service the Company’s
debt obligations and ability to pay dividends and other
distributions to shareholders; competition in the real estate and
retail industries; risks relating to redevelopment activities and
potential acquisition or disposition of properties; failure to
achieve expected occupancy and/or rent levels within the projected
time frame or at all; contingencies to the commencement of rent
under leases; the Company’s historical exposure to Sears Holdings
and the effects of its previously announced bankruptcy filing; the
litigation filed against the Company and other defendants in the
Sears Holdings adversarial proceeding pending in bankruptcy court;
the terms of the Company’s indebtedness and availability or sources
of liquidity, including the Company’s ability to access or obtain
sufficient sources of financing to fund its liquidity needs and
economic conditions that may affect the cost of borrowing;
environmental, health, safety and land use laws and regulations;
restrictions with which the Company is required to comply in order
to maintain REIT status and other legal requirements to which the
Company is subject; risks and costs associated with volatility in
commodity and labor prices or as a result of supply chain or
procurement disruptions; and the Company’s relatively limited
operating history as an independent public company. For additional
discussion of these and other applicable risks, assumptions and
uncertainties, see the “Risk Factors” and forward-looking statement
disclosure contained in the Company’s filings with the Securities
and Exchange Commission, including the Company’s annual report on
Form 10-K for the year ended December 31, 2020 and any subsequent
quarterly reports on Form 10-Q. While the Company believes that its
forecasts and assumptions are reasonable, the Company cautions that
actual results may differ materially. The Company intends the
forward-looking statements to speak only as of the time made and do
not undertake to update or revise them as more information becomes
available, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211129005154/en/
Seritage Growth Properties Amanda Lombard, CFO (212) 355-7800
IR@Seritage.com
Seritage Growth Properties (NYSE:SRG)
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