Wheeler REIT secures $10M loan to back tender offer

Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), a Maryland-based company, has announced on Monday that its wholly-owned subsidiaries, Cedar Realty (NYSE:CDR) Trust, Inc. and Cedar Realty Trust Partnership, L.P., have entered into a commitment letter with KeyBank National Association for a $10 million senior unsecured term loan. According to InvestingPro data, the company maintains a healthy current ratio of 2.18, indicating sufficient liquidity to meet short-term obligations.

The loan will support Cedar’s tender offer to purchase up to 563,380 shares of its 7.25% Series B Cumulative Redeemable Preferred Stock, which is expected to close on April 4, 2025. This move comes as the stock has experienced significant volatility, with InvestingPro showing a 91.77% decline year-to-date. The nine-month loan, with an option to extend for an additional three months, will be guaranteed by Wheeler REIT and secured by the company’s cash in a KeyBank money market guaranty collateral account.

Wheeler REIT’s guarantee is contingent on the guaranty collateral account maintaining a balance equal to the outstanding principal of the loan, restricting access to the funds until the loan is fully repaid. Cedar plans to fund the loan repayment through its operations and proceeds from asset sales.

The company’s forward-looking statements indicate that these plans are subject to risks and uncertainties that could affect future results. This information is based on a press release statement from the company. Wheeler REIT has disclaimed any obligation to update these forward-looking statements except as required by law.

In other recent news, Wheeler Real Estate Investment Trust, Inc. has announced a one-for-five reverse stock split of its common stock, effective March 26, 2025. This action will consolidate shares, impacting convertible securities and preferred stocks, with adjustments to conversion rates and prices. Additionally, Wheeler REIT has adjusted the conversion price of its 7.00% Subordinated Convertible Notes due 2031, reducing it to approximately $0.91 per share following redemptions of Series D Cumulative Convertible Preferred Stock. The company has also completed an unregistered equity swap, issuing 1,071,200 common shares in exchange for 82,400 shares each of its Series D and Series B Convertible Preferred Stock. This exchange was part of a strategic move to manage its capital structure, executed without cash proceeds. Wheeler REIT’s recent activities reflect ongoing efforts to restructure its financial framework. These developments are based on recent SEC filings and press releases from the company.

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