GGP Buys Warrants Held by Affiliates of Blackstone and Fairholme Funds in $633M Transaction

General Growth Properties Inc. purchased the warrants held by affiliates of The Blackstone Group and Fairholme Funds Inc. for approximately $633 million, using its available cash resources. Effective with this transaction, Blackstone and Fairholme no longer hold any warrants to acquire the common shares of GGP.

The warrants were exercisable into approximately 52 million common shares of the company at a weighted average exercise price of approximately $9.37 per share. They were scheduled to expire in November 2017.

In addition, pursuant to an offer previously made by Brookfield Asset Management Inc., the independent members of GGP’s board of directors decided not to purchase the warrants recently acquired by Brookfield from affiliates of Pershing Square Capital Management L.P. Brookfield is now the sole holder of the company’s remaining outstanding warrants, which are currently exercisable into approximately 83 million common shares at a weighted average exercise price of approximately $9.53 per share.

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