Macerich seeks help from investment bank for notes that come due in July

With malls stymied by pandemic-related closures and bankrupted tenants, Macerich finds its cash flow limited and has hired the PJT Partners investment bank to help it deal with a $1.5 billion revolving credit facility that comes due in July.

Bloomberg reported the hiring-based information from “people with knowledge of the matter” who asked not to be named. 

Macerich has already extended the maturity on three of its loans, extending some $300 million in payments out to 2022. Occupancy in Macerich malls reported in the company’s fourth-quarter earnings report was down to 90% from 94% in 2019. 

Retail bankruptcies were accelerated by the pandemic, CEO Thomas O’Hern said in his Q4 earnings call, but he expected a gradual recovery in 2020 as vaccinations increase and people go back to stores again.

Earlier this week, in a conference call hosted by Jefferies investment bank, real estate disposition specialist Andy Graiser said that retailers emerged from 2020 with the burden of $40 billion in rent deferrals.