In a bit of an upset, William Ackman will not provide DIP financing to General Growth Properties. Instead, the REIT will be financed by Farallon Partners. This is interesting, in part, because Farallon Partners was Simon Property Group's partner in acquiring Mills Corp. a couple years back.
General Growth Properties Inc. has chosen a group led by Farallon Capital Management to provide up to $400 million of bankruptcy financing to the No. 2 U.S. mall owner.
General Growth chose Farallon Capital's group over Pershing Square Capital Management, a hedge fund headed by investor William Ackman, according to court documents filed in U.S. bankruptcy court in Manhattan on Tuesday.
Under the new agreement, the investors may receive up to 8 percent of the common stock of the reorganized company upon its emergence from bankruptcy. The financing agreement also calls for the lenders to receive a 3.75 percent exit fee.
Open Air Investors LLC, managed by Farallon, agreed to commit $210 million to the financing. Luxor Capital LLC agreed to provide $110 million. Canpartners Investments IV LLC and Perry Principals Investments LLC, an affiliate of Perry Capital, each agreed to $25 million. Delaware Street Capital Master Funds L.P. put up $5 million. Affiliates of institutional investment managers Whitebox Advisors LLC agreed to put up the rest.
Past links and stories:
- May 7, 2009, GGP FFO Down Big, But Fundamentals Look OK
- April, 28, 2009, GGP Adds Entities to Chapter 11 Filing
- April 17, 2009, GGP's Bankruptcy, Day 2
- April 16, 2009, GGP on CNBC
- April 16, 2009, Blogging General Growth's Media Call
- April 16, 2009, GGP's Bankruptcy
- April 15, 2009, Rouse CDS Worth 28.25% of the Debt They Insure
- April 14, GGP Bondholders Seek Lawsuit
- April 6, 2009, Strange Action on GGP Stock
- March 31, 2009, GGP Fails to Convince Bondholders, But Avoiding Bankruptcy For Now
- March 23, 2009, GGP Pushes for Another Extension
- March 20, 2009, Citigroup Moves to Foreclose on GGP Mall
- March 20, 2009, GGP's Lenders Waive Default; REIT Asks for Further Forbearance
- March 10, 2009, GGP Asks for More Time
- March 3, 2009, GGP Reportedly Getting Bids for Properties
- Feb. 24, 2009, GGP Posts Gains But Drops Earnings Call and Estimates
- Feb. 20, 2009, GGP Bankruptcy Scenario
- Feb. 18, 2009, GGP Misses Payments
- Feb. 2, 2009, General Growth Gets Another Extension
- Jan. 5, 2009, GGP Switches Bankruptcy Advisors
- Dec. 30, 2008, GGP Signs Forebearance Agreement
- Dec. 19, 2008, GGP Puts Centers on the Block
- Dec. 18, 2008, General Growth Extension Comes Through
- Dec. 15, 2008, GGP "Continuing its Discussions with Lenders"
- Dec. 14, 2008, Breaking: GGP Refinances
- Dec. 5, 2008, Citi Plays Hardball With GGP
- Dec. 3, 2008, Centro, GGP Find Ways to Hang On
- Dec. 1, 2008, GGP Gets Two Week Extension
- Nov. 25, 2008, Ackman Builds Stake in GGP
- Nov. 20, 2008, General Growth Hires Bankruptcy Advisor
- Nov. 17, 2008, General Growth Downgraded; Feldman to Stop Filing Public Reports
- Nov. 12, 2008, General Growth Roundup
- Nov. 11, 2008, General Growth Warns of Default
- Nov. 5, 2008, GGP, Kimco Fall After Cutting Forecasts
- Nov. 2, 2008, General Growth "Almost Literally Worth Nothing"
- Oct. 17, 2008, Management Changes at GGP
- Oct. 15, 2008, Margin Calls Hit Two More Retail REITs
- Oct. 7, 2008, General Growth Near Bankruptcy?
- Oct. 3, 2008, General Growth CFO Steps Down; Company Suspends Dividend
- Oct. 2, 2008 GGP Under Fire for Inclusion on Short-Sell Ban List
- Oct. 1, 2008, Could General Growth Be Sold?
- Sept. 23, 2008, Short Selling Banned on General Growth
- Sept. 22, 2008, General Growth Strikes Back
- Sept. 16, 2008, General Growth Offers More Recourse
- Aug. 12, 2008, Another Look at GGP's Debt
- Aug. 6, 2008, Analysis of GGP's Debt
- July 25, 2008, Stories With Bigger Implications?
- July 14, 2008, GGP Lines Up New Financing
- April 16, 2008, GGP's Growing Debt Problem