General Shopping defers 12% note coupon, plans tender for 10% notes

New York, Sept. 8 – General Shopping Brasil SA said that it exercised the right to defer the interest payment due Sept. 20 on the $150 million of 12% perpetual subordinated fixed-to-floating rate notes issued by General Shopping Investments Ltd.

Because the company has the right to defer the payments under the terms of the notes, the deferral does not constitute an event of default, according to a notice from the company.

Deferred amounts will accrue interest at a rate 1% higher than the regular rate until paid in full.

General Shopping said it plans transactions intended to reduce its dollar-denominated debt and to increase “the efficiency of its overall capital structure.”

Measures to be taken may include a tender offer for some of the $250 million of 10% perpetual notes issued by General Shopping Finance Ltd.

The tender will depend, among other factors, on General Shopping’s ability to obtain financing through the issuance of debt and/or equity securities in Brazil or through other real-denominated financing and sell ownership interests in one or more of its shopping malls.

General Shopping is based in Sao Paulo and operates shopping malls.

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