Pennsylvania Real Estate Investment Trust (NYSE:PEI-B) Files An 8-K Other Events
On July 8, 2019, PM Gallery LP (the Borrower), a Delaware limited partnership and a joint venture entity owned indirectly by Pennsylvania Real Estate Investment Trust (the Trust) and The Macerich Company (Macerich), entered into a modification (the Modification) to the Term Loan Agreement dated as of January 22, 2018, by and among the Borrower, Wells Fargo Bank National Association as administrative agent and a lender, and certain other lenders signatory thereto (the Term Loan Agreement). The Modification increased potential borrowings under the Term Loan Agreement from up to $250,000,000 to up to $350,000,000, allowed the Borrower to extend the availability period for which borrowings are available, and corrected certain typographic and technical errors.
The Term Loan Agreement provides for (i) a five-year term, (ii) an interest rate at the Borrowers option for each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 1.00% or (B) LIBOR for the applicable period plus 2.00%, (iii) a full recourse guarantee by PREIT Associates, L.P. and The Macerich Partnership, L.P., on a several basis, and (iv) a pledge of the equity interests of certain indirect subsidiaries of the Trust and Macerich that have a direct or indirect ownership interest in certain properties that are part of the Fashion District Philadelphia project, all of which remain unchanged under the Modification. The Term Loan Agreement contains certain covenants typical for loans of its type and that are consistent with the covenants in the Trusts credit agreements, which also remain unchanged under the Modification.