CBL not making interest payment
CBL Properties on Tuesday reported it elected to not make an $11.8 million interest payment that was due and payable on June 1 with respect to the company’s operating partnership’s 5.25% senior unsecured notes due 2023.
In a filing with the Securities and Exchange Commission, the operator of Hamilton Place and Northgate malls in Chattanooga said it’s exploring alternatives to reduce interest expenses and extend the maturity of its debt in the wake of store closings and deferred rental payments by many tenants at its shopping centers amid the coronavirus pandemic.
CBL said that under the indenture governing the 2023 notes, the operating partnership has a 30-day grace period to make the interest payment before the nonpayment is considered an “event of default.”
The company said in the filing that its 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.