GREENSBORO, N.C., June 15, 2020 /PRNewswire/ -- Tanger
Factory Outlet Centers, Inc. (NYSE:SKT) provided liquidity
and operational updates and announced the completion of amendments
to certain debt agreements and executive employment contracts.
"As governmental mandates are lifted, we are encouraged to see
retailers reopen their stores and pleased that traffic is returning
to our centers. This demonstrates the durability of Tanger's value
proposition for retailers and for the consumer," said Steven B. Tanger, Chief Executive Officer.
Currently, mandates have been eased or lifted and in-store
shopping for non-essential retail is allowed at all 39 of the
Company's centers, the vast majority of which are open-air
properties. As of June 14, open
stores represented 72% of total occupied stores in the consolidated
portfolio, 68% of total gross leasable area and 69% of pre-COVID-19
annualized base rent. Weekly traffic exceeds 85% of prior year
levels. At centers where in-store retail has been allowed for 30
days or more, weekly traffic exceeds 90% of prior year levels and
open stores as a percentage of total occupied stores are
approaching 90%.
On June 11, 2020, Tanger completed
amendments to debt agreements for its lines of credit and bank term
loan, primarily to maximize future covenant flexibility. The
amendments, among other things, allow the Company to access the
existing surge leverage provision, which provides for an increase
to the maximum thresholds to 65% from 60% for total leverage and
unsecured leverage, for twelve months starting July 1, 2020, during which time share repurchases
are prohibited. Additionally, the amendments calculate certain
metrics on an adjusted annualized basis for measurement periods
that end during the nine-month period starting October 1, 2020. Some definitional modifications
related to the calculation of certain covenants are permanent,
including the netting of cash balances in excess of $30 million (or debt maturing in the next 24
months, if less) from liability and asset calculations for certain
covenants. The foregoing summary does not constitute a complete
description of the amendments. Further details are available in the
Form 8-K filed today, with exhibits that include the amendments in
their entirety.
Today, the Company repaid $100
million of the outstanding balances under its lines of
credit. After the paydown, Tanger's cash on hand was approximately
$433 million and the Company's unused
capacity under its lines of credit was approximately $100 million.
In response to shareholder feedback and as part of Tanger's
commitment to robust executive pay practices, the Company also
recently amended the employment contracts of several executives to
reflect their agreement to forego the right to certain severance
benefits upon voluntary resignation following a change in control.
Single-trigger change-in-control severance benefits are no longer
included in any of Tanger's employment contracts. Specific details
regarding these amendments are available in the Form 8-K filed on
June 8, 2020.
About Tanger Factory Outlet Centers, Inc.
Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a
publicly-traded REIT headquartered in Greensboro, North Carolina that presently
operates and owns, or has an ownership interest in, a portfolio of
39 upscale outlet shopping centers. Tanger's operating properties
are located in 20 states and in Canada, totaling approximately 14.3 million
square feet, leased to over 2,800 stores which are operated by more
than 510 different brand name companies. The Company has more than
39 years of experience in the outlet industry. Tanger Outlet
Centers continue to attract more than 181 million visitors
annually. For more information on Tanger Outlet Centers, call
1-800-4TANGER or visit the Company's website at
www.tangeroutlets.com.
Safe Harbor Statement
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and includes this statement for purposes of complying
with the safe harbor provisions. Forward-looking statements, which
are based on certain assumptions and describe the Company's future
plans, strategies and expectations, are generally identifiable by
use of the words "believe," "expect," "intend," "anticipate,"
"estimate," "project," "will," "forecast" or similar expressions,
and include statements regarding retail trends following the
lifting of COVID-19 government mandates and the impacts of the
amendments to the Company's credit agreements.
You should not rely on forward-looking statements since they
involve known and unknown risks, uncertainties and other important
factors which are, in some cases, beyond our control and which
could materially affect our actual results, performance or
achievements. Important factors which may cause actual results to
differ materially from current expectations include, but are not
limited to: risks related to the COVID-19 pandemic; our inability
to develop new outlet centers or expand existing outlet centers
successfully; risks related to the economic performance and market
value of our outlet centers; the relative illiquidity of real
property investments; impairment charges affecting our properties;
our dispositions of assets may not achieve anticipated results;
competition for the acquisition and development of outlet centers,
and our inability to complete outlet centers we have identified;
the bankruptcy of one or more of the retailers in our centers; the
fact certain of our lease agreements include co-tenancy and/or
sales-based provisions that may allow a tenant to pay reduced rent
and/or terminate a lease prior to its natural expiration;
environmental regulations affecting our business; risks associated
with possible terrorist activity or other acts or threats of
violence, public health crises and threats to public safety; our
dependence on rental income from real property; our dependence on
the results of operations of our retailers; the fact that certain
of our properties are subject to ownership interests held by third
parties, whose interests may conflict with ours; risks related to
uninsured losses; the risk that consumer, travel, shopping and
spending habits may change; risks associated with our Canadian
investments; risks associated with attracting and retaining key
personnel; risks associated with debt financing; risks associated
with our guarantees of debt for, or other support we may provide
to, joint venture properties; the effectiveness of our interest
rate hedging arrangements; uncertainty relating to the potential
phasing out of LIBOR; our potential failure to qualify as a REIT;
our legal obligation to make distributions to our shareholders;
legislative or regulatory actions that could adversely affect our
shareholders; our dependence on distributions from Tanger
Properties Limited Partnership (the "Operating Partnership") to
meet our financial obligations, including dividends; the risk of a
cyber-attack or an act of cyber-terrorism and other important
factors set forth under Item 1A - "Risk Factors" in the Company's
and the Operating Partnership's Annual Report on Form 10-K for the
year ended December 31, 2019, as
updated by the Company's and the Operating Partnership's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020 and the Company's other filings
with the SEC. Accordingly, there is no assurance that the Company's
expectations will be realized. The Company disclaims any intention
or obligation to update the forward-looking statements, whether as
a result of new information, future events or otherwise. You are
advised to refer to any further disclosures the Company makes or
related subjects in the Company's Current Reports on Form 8-K that
the Company files with the SEC.
Investor Contact
Information
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Cyndi
Holt
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Jim
Williams
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VP, Investor
Relations
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EVP &
CFO
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336-834-6892
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36-834-6800
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cyndi.holt@tangeroutlets.com
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jim.williams@tangeroutlets.com
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Media Contact
Information
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Quentin
Pell
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VP, Corporate
Communications and Enterprise Risk Management
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336-834-6827
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quentin.pell@tangeroutlets.com
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SOURCE Tanger Factory Outlet Centers, Inc.