Pennsylvania Real Estate Investment Trust units extend promissory notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 4 – Pennsylvania Real Estate Investment Trust subsidiaries PR Cherry Hill STW LLC and Cherry Hill Center, LLC entered into a second loan extension and modification agreement to their promissory notes with New York Life Insurance Co. and Teachers Insurance and Annuity Association of America on Oct. 31, according to an 8-K filing with the Securities and Exchange Commission.

Each promissory note is sized at $150 million and is dated Aug. 15, 2012.

The extension pushes out the maturity date of the notes to Feb. 1, 2023 from Nov. 1.

The second extension and modification agreement also includes an option for the borrowers to further extend the maturity date of the notes to May 1, 2023 if an additional $1 million of the outstanding principal balance of the notes is paid down on each of the monthly payment dates occurring in February, March and April 2023, an extension fee of $2.5 million is paid and the maturity dates of the trust’s two secured credit agreements are extended to December 2023, among other conditions.

The Philadelphia-based real estate investment trust stated it is focusing its efforts on improving its balance sheet and mitigating the impact of interest expenses to drive earnings.

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