WPG - Washington Prime restructuring plan calls for $950M in debt reduction

Washington Prime Group's (WPG) Chapter 11 restructuring plan ((RSA)) includes reducing its debt by almost $950M through converting its unsecured notes into equity and a $190M paydown of the mall REIT's revolving credit and term loan facilities.WPG stock declines 13% in afternoon trading; earlier in the session it plummeted as much as 63%.The company was unable to pay its bond interest payments after cash flow suffered when it had to temporarily close ~100 of its shopping centers during the pandemic. Even before COVID-19 shopping malls were already under pressure as consumers were buying more goods online.The RSA plan contemplates raising $325M through an equity rights offering, fully backstopped by SVPGlobal as plan sponsor, that will go to paying down secured debt.The RSA also includes a four-year extension of the remaining credit facility debt and a baseline recovery for the company's existing common and preferred equity holders of $40M in cash or 6.125% of

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Washington Prime restructuring plan calls for $950M in debt reduction