Seritage Growth Properties completed a voluntary $20 million prepayment of its $1.6 billion term loan with Berkshire Hathaway Life Insurance Company of Nebraska, bringing the outstanding balance down to $50 million and cutting the company’s annual interest expense by roughly $1.4 million.
The prepayment is a key step in Seritage’s Plan of Sale, a strategy approved by shareholders in October 2022 that aims to liquidate the company’s real‑estate portfolio and return capital to investors. By reducing debt, Seritage frees up cash that can be deployed to accelerate asset sales and meet upcoming debt‑service obligations as the loan’s maturity is extended to July 31, 2026.
Seritage’s portfolio, which has been the focus of the Plan of Sale, consists mainly of retail and mixed‑use properties across the United States, with a concentration in high‑traffic shopping centers and urban redevelopment sites. Recent dispositions—including a sale in Aventura, Florida—have generated proceeds that have been used to fund the latest prepayment and other debt‑repayment initiatives.
Management reiterated that the prepayment demonstrates disciplined execution of the Plan of Sale and reflects the company’s focus on liquidity. The company has already repaid $1.55 billion of the term loan since December 2021, underscoring a sustained effort to deleverage its balance sheet.
By cutting interest costs and reducing leverage, Seritage positions itself to complete the remaining asset sales more efficiently and to potentially distribute remaining proceeds to shareholders as the company moves toward dissolution. The prepayment also signals to lenders and investors that the company is actively managing its debt profile in a challenging real‑estate market.
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