However, Prime Group has agreed to pay Security Capital an additional 3.5% beginning Feb. 8, on top of the 7.5% coupon rate the preferred shares already carry. The additional interest premium can go up to 5.25% if the shares are not redeemed before May 8, according to a filing with the Securities and Exchange Commission.
Prime Group could have the cash to pay off that debt soon, as it reportedly is close to a deal involving its 770,191-sf Central Loop office building at 180 N. LaSalle St. However, a foreclosure auction involving a $104-million debt, which could result in Paramus, NJ-based Vornado Realty Trust and Montreal-based Cadim inc. taking a one-third stake in the REIT, has been postponed again. And Prime Group also has been working with Friedman Billings Ramsey to extend a $12-million mezzanine loan on its Prime Aurora Business Park.
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