Mall owner CBL Properties has entered into a restructuring support agreement.
The plan would eliminate the approximately $1.4 billion principal amount of unsecured notes in exchange for the issuance of $500 million of new senior secured notes due June 2028, approximately $50 million of cash and approximately 90 percent of the new common equity of the company to holders of the Unsecured Notes. As a result, the plan, if implemented, will result in the elimination of approximately $900 million of debt, extension of the company’s debt maturity schedule and a reduction in annual interest expense of more than $20 million. The plan also contemplates eliminating the company’s more than $600 million obligation on its preferred stock in exchange for new common equity and warrants. In sum, the plan will provide the company with a significantly stronger balance sheet by reducing total debt, extending debt maturiti
