ITEM 7.01 Regulation FD Disclosure
As previously disclosed, in January 2020, CBL & Associates Properties. Inc. and
its majority owned subsidiary CBL & Associates Limited Partnership (the
"Operating Partnership", and together with CBL & Associates Properties, Inc.,
the "Company") engaged Weil, Gotshal & Manges LLP and Moelis & Company LLC (the
"Advisors") to assist the Company in exploring several alternatives to reduce
overall leverage and interest expense and to extend the maturity of its debt,
among other things. The Company's Advisors recently commenced discussions with
advisors to certain holders of its senior unsecured notes and the credit
committee of the Company's senior secured credit facility. On June 2, 2020, the
Company announced that it had elected to not make the $11.8 million interest
payment due and payable on June 1, 2020, with respect to the Operating
Partnership's 5.25% senior unsecured notes due 2023 (the "2023 Notes"). As
discussions continue, the Company has elected to not make the $18.6 million
interest payment (the "Interest Payment") due and payable on June 15, 2020, with
respect to the Operating Partnership's 5.95% senior unsecured notes due 2026
(the "2026 Notes"). Under the indenture governing the 2026 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 2026 Notes.
Any event of default under the 2026 Notes for nonpayment of the Interest Payment
would also be considered an event of default under the Operating Partnership's
senior secured credit facility, which could lead to an acceleration of amounts
due under the facility. Further, if the trustee for the 2026 Notes should
exercise its right to accelerate the maturity of the full balance owed on the
2026 Notes as a result of such an "event of default," that would also constitute
an "event of default" under the 2023 Notes and the Operating Partnership's 4.60%
senior unsecured notes due 2024, which could lead to the acceleration of all
amounts due under those notes. The Company has elected to enter the 30-day grace
period with respect to the Interest Payment in order to advance discussions with
its lenders and explore alternative strategies.
The information disclosed in this Item 7.01 is being furnished and shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities
of that Section, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act, regardless of
any general incorporation language in such a filing.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses