Washington Prime Group (WPG) files for Chapter 11.

Washington Prime Group (WPG) announced today that it has filed for Chapter 11 bankruptcy relief, which follows the completion of a restructuring agreement with a majority of the company's corporate creditors.  The agreement provides for a full equitization of WPG's $721 million unsecured senior notes and a $190 million paydown of the company's bank facilities.  The agreement also incorporates a $325 million equity rights offering, four-year extension of bank credit facilities, and full repayment of all vendor and service provider claims.  WPG's existing common and preferred stockholders would receive either $40 million in cash or a 6.125% allocation of post-petition equity.

WPG also said that it has obtained a $100 million DIP facility to support day-to-day operations during the Chapter 11 process.

Lou Conforti, CEO and Director of Washington Prime Group, stated: “The Company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward. During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The Company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.”

Washington Prime Group is an owner of Class-B regional malls and open-air centers in secondary markets throughout the U.S. As of March 31, 2021, the company's portfolio included interests in 101 properties in 29 states with 36 million square feet of owned GLA.