Washington Prime Group Inc. (NYSE:WPG) stock ended lower on Friday after the news. The stock will be in focus after announcing news this weekend.
Major Trigger:
Washington Prime Group Commences Voluntary Chapter 11 Financial Restructuring with RSA Supported by Over 70% of Holders of Secured and Unsecured Corporate Debt
Key Highlights:
- announced that it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”).
- The Company enters Chapter 11 after executing a restructuring support agreement (the “RSA”) with creditors, led by SVPGlobal, that hold approximately 73% of the principal amount outstanding of the Company’s secured corporate debt and 67% of the principal amount outstanding of the Company’s unsecured notes (collectively, the “Consenting Creditors”).
- The Company will utilize Chapter 11 to implement a comprehensive and consensual financial restructuring of the Company’s corporate-level debt that will allow the Company to substantially deleverage its balance sheet and strengthen its business and operations going forward, either through a full equitization of the Company’s unsecured notes or an alternative value-maximizing transaction that would repay, in full in cash, all of the Company’s corporate-level debt.
- Importantly, Washington Prime Group has secured $100 million in new money debtor-in-possession financing from the Consenting Creditors to support day-to-day operations during the Chapter 11 process and ensure that all business operations continue in the ordinary course without interruption. Washington Prime Group’s guests, retailers and business partners can expect business as usual at all of the Company’s retail town centers throughout the proceedings.
Market Reaction
On Friday, WPG stock fell by 4.35% to $4.84 with more than 5.29 million shares traded hands, above its average volume of 4.9 million shares. Over the past year, the stock has moved within a range of $1.6900 – 16.5500.
){kind=link}