COLUMBUS, Ohio--(BUSINESS WIRE)--WPG (the “Company”), formerly Washington Prime Group, a national leader in the ownership, management and development of retail properties, today announced the successful closing of $1.005 billion securitized mortgage financing. The new non-recourse loan repaid and eliminated the Company’s corporate debt, substantially reduced its borrowing costs, and once again demonstrated strength of the underlying asset base.
Goldman Sachs, Citi and JPMorgan Chase led the single asset single borrower (SASB) CMBS transaction, collateralized by 38 open-air retail centers totaling 8.5 million square feet in 15 states. The landmark deal is the largest securitized retail financing of 2023 to-date.
“In a very challenging market, together with SVP, we were able to put new financing in place that will provide us with greater financial and operating flexibility,” said Chris Conlon, chief executive officer of WPG. “As we look ahead to 2024 and beyond, we are now in the strongest financial position in the history of our company and are well positioned to deliver high growth.”
“This financing is another example of the successful partnership among SVP’s investment, operating and capital markets teams alongside the WGP management team,” said Jonathan Waggoner, Co-Head of the North American Operating Team at SVP. “This transaction refines WPG’s position in the capital markets and reflects the success of the Company’s operational transformation over the last two years. Furthermore, a transaction of this size underlines WPG’s status as a top-tier owner of highly desirable shopping centers across the country.”
The deal was made possible by collaboration among WPG, SVP, the three bank arrangers and the advisors who contributed to the execution. Eastdil Secured served as exclusive financial advisor and debt placement agent to WPG and SVP. Gibson, Dunn and Crutcher LLP provided legal counsel to the Company and SVP. Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to the lenders.
WPG, a privately-owned REIT, is a recognized leader in the ownership, management and development of retail properties. The Company combines a diverse national portfolio with expertise across the entire shopping center sector to provide new opportunities for retailers looking for growth. Learn more at www.wpgus.com.
Strategic Value Partners, LLC (together with its affiliates, "SVP") is a global alternative investment firm that focuses on special situations, private equity, opportunistic credit and financing opportunities. The firm uses a combination of sourcing, financial and operational expertise to unlock value in its portfolio companies. Today SVP manages over $18 billion in assets under management, and since inception, has invested more than $45 billion of capital, including nearly $18 billion in Europe. The firm, established by Victor Khosla in 2001, has approximately 200 employees, including approximately 90 investment professionals, across its main offices in Greenwich (CT) and London, and a presence in Tokyo. Learn more at www.SVPGlobal.com.