INTU PROPERTIES PLC - Update on Lender Discussions

Update on Lender Discussions

INTU PROPERTIES PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code:     ITU
LEI: 213800JSNTERD5CJZO95
INTU PROPERTIES PLC
18 MAY 2020


UPDATE ON LENDER DISCUSSIONS


On 1 May 2020, intu properties plc announced a waiver of certain potential breaches in
respect of its revolving credit facility until 26 June 2020, and that it was extending its
engagement to key stakeholders of the group at the asset level as it explored all options,
including potentially seeking standstills to overcome the current market dislocation.

Discussions have been ongoing since then and today intu provides an update on its current
plans as part of its ultimate strategic objective to fix the balance sheet over the medium term.
Significant market uncertainty remains regarding the impact of Covid-19 on the operations of
intu’s centres which, with the exception of essential stores, remain semi-closed until at least
1 June 2020. Additionally, at this time, the speed of recovery once the UK comes out of
lockdown remains unclear.

The resulting impact on rental collections and valuations at the end of June is likely to result
in breaches of covenants or material liquidity requirements if any such breaches are to be
cured in accordance with the financing documents at that time. This market backdrop, where
the investment market is effectively closed, also creates material uncertainty for any asset
disposal or additional funding process which intu might pursue to address these covenant
issues.

intu believes that in order to provide a stable environment in which to address this situation,
standstill-based agreements with relevant financial stakeholders across its structures, at
both the asset and the group level, are the best course of action and its primary focus to
maximise value.

These standstill arrangements would seek relief from financial covenant testing, debt
amortisation and facility maturity payments for a period through to no later than 31
December 2021. The standstill provisions would also aim to achieve self-funded operational
and financial costs only across the different property owning sub-structures, without recourse
to intu properties plc for any shortfalls during the standstill period with interest being ‘pay if
you can’.

intu believes that the best way forward is achieving stability through such a standstill until the
market dislocation has stabilised and asset valuations and portfolio performance can be
better understood by investors and debt providers and risk can be appropriately priced.
When market dislocation has passed, there will be greater opportunity to explore alternative
capital structures and solutions and disposals to ultimately fix the balance sheet.

intu will seek to promote fairness and stability in its standstill proposals recognising there is
risk of competing interests across groupwide stakeholder interests during this period of
market dislocation.

There can of course be no certainty as to whether any standstill can be achieved with all or
some of the group’s creditors, or as to the terms. Whilst the standstill is the primary focus, it
is possible that earlier individual breaches, under certain of the group’s financings, could
occur over the coming weeks and the group will seek to address such instances as part of
the wider discussions.

intu will make further announcements as appropriate.



ENQUIRIES

intu properties plc
Matthew Roberts                Chief Executive                         +44 (0)20 7960 1353
Robert Allen                   Chief Financial Officer                 +44 (0)20 7960 1360
Adrian Croft                   Head of Investor Relations              +44 (0)20 7960 1212

Public relations
UK:                            Justin Griffiths, Powerscourt           +44 (0)20 7250 1446
SA:                            Frédéric Cornet, Instinctif Partners    +27 (0)11 447 3030




JSE Sponsor
Merrill Lynch South Africa (Pty) Limited




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Date: 18-05-2020 08:00:00
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