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Friday, 22 May 2020

PREIT Warns of Remaining Going Concern; Continues Talks to Modify Debt Covenants

Pennsylvania REIT, which in recent years has been repositioning its portfolio by selling lower-performing properties and focusing on a relatively small number of premier properties, primarily in the northeastern United States, has warned that it had "substantial doubt" about its ability to remain a going concern.

Commercial Real Estate Direct Staff Report

Pennsylvania REIT has warned that it had "substantial doubt" about its ability to remain a going concern.

The Philadelphia company said deterioration in its financial condition as a result of the shutdowns prompted by the coronavirus pandemic has put it in jeopardy of complying with certain debt covenants.

It faces the maturity next year of a revolving credit facility that has $289 million drawn against it and the 2023 maturity of $550 million of term loans. It also carries $896.5 million of mortgages against 10 of its properties with maturities through 2025.

It had reached agreements with its lenders that had provided it temporary relief of certain covenants, but those modifications expire in September. It said it was continuing to work with its lenders on longer-term solutions.

"We have a longstanding relationship with our bank group and are currently underway with discussions regarding a long-term recast of our credit facility," explained Joe Caradino, the company's chief executive, who spoke on a conference call with analysts yesterday.

Meanwhile, the company, which owns 25 retail properties with 20.3 million square feet and one development parcel, said it continues to try selling certain properties to increase liquidity. It also has laid off staff, negotiated forbearance agreements on its property taxes and certain mortgage payments and reduced capital expenditures and operating...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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