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."
