Market Overview

General Growth Properties Buys Warrants Held by Blackstone, Fairholme

Share:
Related GGP
Citi Favors General Growth Properties Defensive Strategy, Reaffirms Buy
Traditional Retail Struggles To Convince Shoppers To Visit Physical Stores
General Growth still a Buy at Citi (Seeking Alpha)
Related BX
2 Boutique Financial Firms To Make Millions Advising On Lions Gate-Starz Deal
Pirating And Pillaging: Overseas Companies 'Borrow' Names Of Well-Known Funds
Fire at Enterprise Products gas plant halts two U.S. Gulf Coast platforms (Seeking Alpha)

General Growth Properties, Inc. (NYSE: GGP) announced today the purchase of warrants held by affiliates of The Blackstone Group ("Blackstone") and Fairholme Funds, Inc. ("Fairholme") for approximately $633 million. The Company will fund the transactions using its available cash resources.

The warrants were exercisable into approximately 52 million common shares of the Company at a weighted average exercise price of approximately $9.37 per share. The warrants were scheduled to expire in November 2017. Effective with these transactions, Blackstone and Fairholme no longer hold any warrants to acquire the Company's common shares.

In addition, pursuant to an offer previously made by Brookfield Asset Management Inc. ("Brookfield") to the Company, the independent members of the Company's Board of Directors decided not to purchase the warrants recently acquired by Brookfield from affiliates of Pershing Square Capital Management, L.P. ("Pershing Square").

Brookfield is now the sole holder of the Company's remaining outstanding warrants which are currently exercisable into approximately 83 million common shares of the Company at a weighted average exercise price of approximately $9.53 per share.

Posted-In: News

 

Related Articles (BX + GGP)

View Comments and Join the Discussion!