General Growth Properties, Inc. ("GGP" or the "Company") today announced it has engaged UBS Investment Bank, a leading global full service financial firm, to assist the Company in evaluating potential financial transactions for emergence from Chapter 11, raising exit capital and with such other matters as may be required by the Board of Directors. The engagement of UBS is subject to Bankruptcy Court approval.
GGP and certain of its subsidiaries filed bankruptcy in April 2009 as a result of the inability to refinance maturing mortgage loans due to the collapse of the credit markets. Since the filing, the Company has pursued subsidiary plans of reorganization to extend mortgage maturities, and, as previously reported, has confirmed plans to restructure secured mortgage loans on 112 properties aggregating approximately $11.6 billion. The Company is focused on the emergence from bankruptcy for the remaining debtors and in connection with such emergence, the reduction of corporate debt and overall leverage and establishment of a sustainable, long-term capital structure for the Company. The Company has determined that new financing will be desirable to achieve these objectives and emerge from Chapter 11.
At the outset of the bankruptcy process, the Company engaged Miller Buckfire & Co., LLC as financial advisor and investment banker. Given the unique circumstances of the Company's bankruptcy filings and the fundamental soundness of the Company's core retail business, the Board of Directors and management of the Company have determined that the Company should consider all forms of exit financing, including capital sources not generally associated with financing a company's emergence from bankruptcy. UBS has been retained to assist with this process.
"The engagement of UBS complements the services provided to us by Miller Buckfire," said Adam Metz, chief executive officer of GGP. "With both advisors, we are positioned to analyze and source the most cost effective primary capital that we will need to complete the reorganization process, a goal intended to benefit all of our stakeholders."
A hearing to consider the Company's motion to engage UBS is currently scheduled before the Bankruptcy Court on February 16, 2010.
This release does not constitute an offer of any securities or the solicitation to buy any securities. There can be no assurance if or when the Company will offer any securities.
ABOUT GGP
GGP currently has ownership interest in, or management responsibility for, more than 200 regional shopping malls in 43 states, as well as ownership in planned community developments and commercial office buildings. The company's portfolio totals approximately 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. The Company's common stock is currently traded in the over-the-counter securities market operated by Pink OTC Markets Inc. using the symbol GGWPQ. For more information on General Growth Properties, go to www.ggp.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements for a number of reasons, including, but not limited to, effectiveness of the plans of reorganization, the bankruptcy filings of the other debtors not currently emerging from bankruptcy, our ability to refinance, extend or repay our near and intermediate term debt, our substantial level of indebtedness, changes in interest rates, retail and credit market conditions, impairments, land sales in the master planned communities segment, the cost and success of development and re-development projects and our liquidity demands. Readers are referred to the documents filed by General Growth Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.
Contacts:
General Growth Properties, Inc.
David Keating, Corporate
Communications
(312) 960-6325, david.keating@ggp.com
