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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.

CBL's stock closed Tuesday on the New York Stock Exchange at 25.5 cents per share, down 6.31%.

 

Zuckerberg won't limit Trump Facebook posts

Mark Zuckerberg, Facebook's chief executive, on Tuesday stood firmly behind his decision to not do anything about President Donald Trump's inflammatory posts on the social network, saying that he had made a "tough decision" but that it "was pretty thorough."

In a question-and-answer session with employees conducted over video chat software, Zuckerberg sought to justify his position on Trump's messages, which has led to fierce internal dissent. Facebook's principles and policies around free speech "show that the right action where we are right now is to leave this up," Zuckerberg said.

"I knew that I would have to separate out my personal opinion," he said. "Knowing that when we made this decision we made, it was going to lead to a lot of people upset inside the company, and the media criticism we were going to get."

Zuckerberg held firm even as the pressure on him to take action on Trump's messages intensified. Civil rights groups said late Monday after meeting with him and Sheryl Sandberg, Facebook's chief operating officer, that it was "totally confounding" that the company was not taking a tougher stand on Trump's belligerent posts, which have contributed to the rhetoric around the protests over police violence in recent days. And several Facebook employees have publicly resigned, with one saying the company would end up "on the wrong side of history."

 

Zoom video booms as business doubles

Zoom Video Communications is rapidly emerging as the latest internet gold mine as millions of people flock to its conferencing service to see colleagues, friends and family while tethered to their homes during the pandemic.

Zoom's revenue for its fiscal first-quarter more than doubled from the same time last year to $328 million, resulting a profit of $27 million — up from just $198,000 a year ago.

The numbers exceeded analysts' already heightened expectations, providing another lift to a rocketing stock that has more than tripled in price so far this year. The surge has left Zoom with a market value of about $59 billion — greater than the combined market values of four largest U.S. airlines, which have seen their businesses hammered by the coronavirus outbreak that has dramatically curtailed travel.

 

Dick's Sporting sales drop 29.5%

Dick's Sporting Goods swung to a loss in the first quarter and sales declined, but the sporting goods retailer is seeing sales improve as stores reopen.

While consolidated same-store sales fell 29.5% in the first quarter, they are only down 4% through the first four weeks of the second quarter.

Dick's reported a fiscal first-quarter loss of $143.4 million on Tuesday, after reporting a profit in the same period a year earlier.

The profit results missed Wall Street expectations, although the $1.33 billion in sales in the period met Street forecasts.

Dick's shares have decreased 26% since the beginning of the year. The stock has increased 6.5% in the last 12 months.

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