The hang-up is one of seven undisclosed lenders, which has yet to agree to the deal, according to a statement from the REIT. "The company is negotiating with theseventh lender to obtain its consent to close the transaction," Prime Group says in a statement.
The subsidiary of Security Capital, Inc. has the right to call in its $40-million preferred stock debt, but so far has elected not to after the REIT upped the coupon rate on the stock, which originally was 7.5%.
Prime Group's last audit included a "going concern" warning, citing the $40-million preferred debt as well as requirements by Dearborn Center lenders that the company have $17.5 million in cash on hand. The REIT had less than $7 million at the end of the first quarter, but has since sold nine suburban office properties, resulting in $19 million in net proceeds.
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