Author Topic: DTLA - DTLA Holdings  (Read 15096 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

petec

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Re: DTLA - DTLA Holdings
« Reply #24 on: May 13, 2020, 03:04:49 AM »
Anyone still watching this at $10?
FFH MSFT BRK BAM ATCO LNG IHG TFG CGT DC/A

SugarRE

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Re: DTLA - DTLA Holdings
« Reply #25 on: May 20, 2020, 10:29:17 AM »
I am unfortunately holding the bag on this on...but eagerly watching Bulldog:

https://specialopportunitiesfundinc.com/wp-content/uploads/sites/40/2020/02/SOF-Annual-f.pdf

BG2008

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Re: DTLA - DTLA Holdings
« Reply #26 on: May 20, 2020, 10:32:52 AM »
Shamingfully raising my hand as another bag holder, luckily at a very small position

petec

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Re: DTLA - DTLA Holdings
« Reply #27 on: May 20, 2020, 10:56:43 AM »
Very tempted here...
FFH MSFT BRK BAM ATCO LNG IHG TFG CGT DC/A

SugarRE

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Re: DTLA - DTLA Holdings
« Reply #28 on: May 20, 2020, 03:02:48 PM »
In the lane of using other folks work, does anyone have insight into Bulldogs thoughts? 

Also, I'm pretty sire these are held in BPY, and therefor there is no selling pressure from a fund life standpoint.

johnny

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Re: DTLA - DTLA Holdings
« Reply #29 on: May 20, 2020, 07:48:40 PM »
In the lane of using other folks work, does anyone have insight into Bulldogs thoughts? 

Also, I'm pretty sire these are held in BPY, and therefor there is no selling pressure from a fund life standpoint.

Quote
Capital securities – fund subsidiaries includes $820 million (December 31, 2018 - $775 million) of equity interests in Brookfield DTLA Holdings LLC (“DTLA”) held by co-investors in the fund, which have been classified as a liability, rather than as non-controlling interest, as holders of these interests can cause DTLA to redeem their interests in the fund for cash equivalent to the fair value of the interests on October 15, 2023, and on every fifth anniversary thereafter.

https://www.sec.gov/Archives/edgar/data/1545772/000154577219000015/bpyex991q32019.htm

That said, most ways I try looking at this security make it feel pretty bad.

Redemption is now over $45/share, accumulating $1.90/year. That doesn't quite make it the -cheapest- source of capital on the balance sheet, but the longer it stays there, the better it gets.

If I could take out capital with an interest rate starting at 4.2%, with the option to PIK the interest, and with the interest rate on the new principle being 0%, I'd max that card out and bend over backwards to avoid accidentally triggering paying for the rest of my life.

Why should it be any different here? Surely the big brains at Brookfield could figure out a way to achieve Value Realization for their actual clients/partners in 2023 without actually losing half a billion dollars to a couple of dipshits who have been wasting their time every year asking to scrutinize the receipts on the lobby enhancements to the Wells Fargo building. No?