By Akiko Matsuda
The Destiny USA mall owner has received a five-year extension for loans backed by the mall known as New York’s largest, averting a potential default on the property.
Since last spring, Pyramid Management Group has sought to restructure its $430 million commercial mortgage-backed securities for the Destiny USA property in Syracuse, NY, engaging legal and financial advisors for the effort.
The two loans — $130 million and $300 million — were transferred in April to special managers due to impending default on the next due date in June, according to Morningstar.
But the company said on Thursday it had “worked successfully with its lender” to extend the terms of the loans by five years.
“Now more than ever, lenders and municipalities realize the importance of the operator behind these properties,” said Pyramid Chief Executive Stephen J. Congel, who added that the extension allows Pyramid to continue to reinvest in the mall.
In addition to the $430 million loans, Destiny USA is also obligated on approximately $286 million in municipal bond debt that was downgraded deeper into junk territory by Fitch Ratings in May. Pyramid did not immediately return a request for comment on Thursday.
Write to Akiko Matsuda at Akiko.Matsuda@wsj.com
(END) Dow Jones Newswire
6/23/22 1929 ET