Report: Washington Prime May Be Seeking $150M Bankruptcy Loan

YOUNGSTOWN, Ohio — Bloomberg reported Monday that Guggenheim, the investment bank of Washington Prime Group Inc., has connected with prospective lenders for a potential $150 million debtor-in-possession loan.

Bloomberg reports negotiations are ongoing and the terms could change. Washington Prime’s stock dropped about 12.3% to $2.72 after Bloomberg’s report. As of this posting, the stock price stood at $2.78.

Washington Prime owns about 100 malls throughout the United States, including the Southern Park Mall in Boardman. Last week, the Columbus-based operator of shopping centers reported it lost $111.4 million in the fourth quarter and would default on a $23.2 million interest payment due March 17.

The company said it entered into forbearance agreements with its creditors that expire March 31. That gives the company time to continue “to restructure its capital structure,” according to the filing.

At the time, the company noted it may need to restructure through Chapter 11 bankruptcy reorganization.

“Although the company continues to be open to all discussions with the holders of the notes and its other stakeholders regarding a potential restructuring, there can be no assurance the company will reach an agreement regarding a restructuring in a timely manner, on terms that are attractive to the company, or at all,” Washington Prime reported at the time. “The company expects to continue to provide quality service to its customers without interruption and work with its business partners as usual during the course of these discussions and any potential transaction.”

Published by The Business Journal, Youngstown, Ohio.