Retail REIT Washington Prime has skipped a $23.2 million interest payment and is reportedly considering structuring, according to a recent regulatory filing.
In an 8-K filing with the SEC, Washington Prime says it elected to withhold the payment, which was due on February 15 with respect to outstanding senior notes that mature in 2024. The firm has a 30-day grace period to make payments before triggering default; if default occurs, the trustee or the holders of at least 25% of the notes could accelerate the total outstanding balance of the debt, which would then result in a cross-default with some of Washington Prime's other debt obligations.
The announcement followed another 8-K filing several days earlier in which Washington Prime announced it would be giving $11.6 million in bonuses to 17 executives.
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