Author Topic: DTLA - DTLA Holdings  (Read 9508 times)

Philbert77

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Re: DTLA - DTLA Holdings
« Reply #20 on: October 15, 2019, 04:06:48 PM »
more mention of DTLA: http://east72.com.au/wp-content/uploads/2019/10/E72-Quarterly-Report-Sept-2019.pdf

"DTLA has two significant debt liabilities upcoming:

• $220m in November 2019; and
• $765m in October/November 2020 with options to extend $500m of this for 1-3 years

In some ways, the debt repayments – whilst not mandatory – do act as a potential catalyst towards an all embracing refinancing. Brookfield have been supportive of DTLA through the Senior “B” interest which ranks ahead of the publicly traded preferred shares. This does raise the potential risk of Brookfield continually putting funds into the structure with prior ranking. However, in turn, this depletes the potential value of their parallel series A1 preferred interest, as well as their wholly owned common equity.
We view DTLA as a rare piece of distressed paper with significant upside through the repayment of all or part of the cumulative dividends and principal in the event of a portfolio sale. There is no guarantee that the preferred shares may not “transfer” with the structure; however, the fact the Brookfield preferreds would also be locked-in under that scenario suggests otherwise."


Seth Lowry

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Re: DTLA - DTLA Holdings
« Reply #21 on: October 15, 2019, 05:50:56 PM »
Here is some background on Brookfield's "reputation" and its willingness to abuse minority shareholders through capital structure subordination/manipulation

https://seekingalpha.com/article/4291268-brookfield-business-partners-partner-like-needs-enemies

I've also attached a case study on terraform power and BREP

Let's see if BPY can make a hat trick on minority shareholder abuse

Philbert77

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Re: DTLA - DTLA Holdings
« Reply #22 on: October 15, 2019, 06:54:56 PM »
I get that. I exited graftech partially because of  how they have handled the whole Teekay Offshore scenario. In this situation their hands are tied with their ability to get their equity out being connected with the preferred shares. I also have some confidence with the involvement of Bulldog Investors on this one.

johnny

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Re: DTLA - DTLA Holdings
« Reply #23 on: October 16, 2019, 10:58:42 AM »
new bull thesis: well our prefs haven't paid out for years, but on the bright side there are some massive debt maturities coming up