PREIT receives final approval of $60 million DIP financing

By Sarah Lizee

Olympia, Wash., Jan. 8 – Pennsylvania Real Estate Investment Trust (PREIT) received final approval of a $60 million debtor-in-possession facility via second-lien lenders, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The new-money DIP facility will convert into exit term loans in an amount equal to 101% of the DIP loans, as previously reported.

Interest on the DIP facility is SOFR (subject to a 0% floor) plus 700 basis points. The default rate would be an additional 200 bps.

There is a 2.5% draw payment, payable in cash on the date of any draw. There is also a backstop premium of 1.75% and a roll premium of 1%.

Wilmington Savings Fund Society, FSB is the agent on the DIP facility.

PREIT is a Philadelphia-based real estate investment trust. The company filed Chapter 11 for a second time on Dec. 10 under case number 23-11974.

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