Howard Hughes wraps tender, to redeem remaining 5 3/8% notes

By Taylor Fox

New York, Feb. 17 – Howard Hughes Corp. announced the expiration of its cash tender offer for any and all $1 billion 5 3/8% senior notes due 2025 (Cusip: 44267DAB3) and a related consent solicitation seeking to effect certain amendments to the notes, according to a news release.

As previously reported, as of the 5 p.m. ET Feb. 1 early tender date, $512.5 million, or 51.2%, of the notes had been validly tendered and accepted for purchase. No further tenders were tendered.

Howard Hughes will redeem the remaining amount of notes on March 15 at a price of 102.688 plus interest.

The company also received requisite consents to execute a supplement indenture amending the notes and executed the fourth supplemental indenture effecting the proposed amendments on Feb. 2.

The amendments will eliminate substantially all of the restrictive covenants and certain events of default and related provisions contained in the indenture and reduce the notice period required for optional redemption of the notes, which proposed amendments would be contained in a supplemental indenture.

Holders who tendered notes prior to the early tender date will receive the total consideration of $1,031.5 per $1,000 of notes tendered, which amount includes an early tender premium of $30 per $1,000 plus interest.

Holders who tender notes after the early tender date, but before the expiration date will receive $1,001.25 per $1,000 of notes.

The company will also pay interest.

Wells Fargo Bank, NA is the trustee and BofA Securities, Inc. (980 388-4370, debt_advisroy@bofa.com) is the dealer manager and solicitation agent.

D.F. King & Co., Inc. (888 887-1266) is the tender agent and information agent.

Based in Dallas, Howard Hughes owns, manages and develops commercial, residential and mixed-use real estate throughout the United States.

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