Seritage Growth Properties Announces Amendment to Senior Secured Term Loan Agreement


Provides Seritage with the ability to prepay the loan and the option to extend the maturity date to July 2025, subject to $800 million in prepayments

NEW YORK, November 29, 2021–(BUSINESS WIRE)–Seritage Growth Properties (NYSE: SRG) (the “Company”), a nationwide owner and developer of 170 commercial, residential and mixed-use properties, today announced an amendment to Seritage Growth Properties LP and the Company’s senior secured term agreement (the “Agreement”) with Berkshire Hathaway Life Insurance Company of Nebraska for the $1.6 billion term loan facility previously announced on July 31, 2018.

Under the addendum, the companies mutually agreed that the “remedies” provision of the agreement would not apply to prepayments of principal on the term loan facility. In addition, the companies have agreed that, at Seritage’s option, the agreement may be extended for two years from the expiry date of July 31, 2023 (the “Maturity Date”) until July 31, 2025. , provided that the principal of the term loan facility has been reduced to $800 million by the maturity date.

In all other respects, the Agreement remains unchanged.

About Serage Growth Properties

Seritage is primarily engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties across the United States. As of September 30, 2021, the Company’s portfolio consisted of interests in 170 properties comprising approximately 10.0 million square feet of GLA or custom leased area (approximately 8.0 million shared), of which approximately 4.0 million are held by non-consolidated companies. entities (approximately 2.0 million shared), approximately 600 acres owned or under development and approximately 10.0 million square feet of GLA or approximately 850 acres to be disposed of.

Forward-looking statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking words such as “may”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”. “, “estimates”, “predicts” or “potential” or the negative form of these words and expressions or similar words or expressions which are predictions or indicate future events or trends and which do not relate solely to historical matters Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed in any forward-looking statement. that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate, and general economic conditions; the impact of flu x current negative operating cash flow on the Company’s ability to finance ongoing operations and development; the impact of the COVID-19 pandemic on the Company’s tenant businesses and on the Company’s business, revenues, cash flows, results of operations, financial condition, liquidity, prospects, its ability to service the Company’s debts and its ability to pay dividends and other distributions to shareholders; competition in the real estate and retail industries; risks associated with redevelopment activities and the potential acquisition or disposition of properties; failure to achieve forecast occupancy and/or rent levels on schedule or at all; contingencies at the commencement of rent under leases; the company’s historical exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; litigation against the Company and other defendants in Sears Holdings’ adversarial proceedings pending in bankruptcy court; the Company’s debt conditions and the availability or sources of liquidity, including the Company’s ability to access or obtain sufficient sources of financing to fund its liquidity needs and economic conditions that may affect the cost loan; environmental, health, safety and land use laws and regulations; the restrictions with which the Company is required to comply in order to maintain its status as a REIT and other legal requirements to which the Company is subject; risks and costs associated with volatility in raw material and labor prices or as a result of supply chain or supply disruptions; and the Company’s relatively limited operating history as an independent public company. For a further discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statements contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report. the Company on Form 10-K for the year ended December 31, 2020 and all subsequent quarterly reports on Form 10-Q. Although the Company believes that its forecasts and assumptions are reasonable, the Company cautions that actual results may differ materially. The Company intends that forward-looking statements speak only as of the date they are made and does not undertake to update or revise them as more information becomes available, except as required by law. requires it.

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Serage growth properties
Amanda Lombard, Chief Financial Officer
(212) 355-7800
[email protected]


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