CTO Realty Growth Announces Exchange Agreements for Convertible Notes
Winter Park, Florida – April 3, 2025
CTO Realty Growth, Inc. (CTO), a real estate investment trust (REIT) focused on acquiring and managing commercial properties, announced today that it has entered into privately negotiated exchange agreements with certain holders of its 3.875% Convertible Senior Notes due April 15, 2025. The exchange agreements allow noteholders to exchange their existing notes for new notes with different terms.
Terms of the New Notes
The new notes will have an aggregate principal amount equal to the outstanding principal amount of the exchanged notes, maintaining the same conversion ratio. However, the maturity date of the new notes will be extended to April 15, 2030.
Impact on CTO Realty Growth
By extending the maturity of the notes, CTO Realty Growth will reduce its near-term debt maturities, improving its debt profile and financial flexibility. This move comes as the company continues to focus on its growth strategy and investment in commercial properties.
Impact on Shareholders
The extension of the maturity of the notes will not have a direct impact on CTO Realty Growth shareholders as the conversion ratio remains the same. However, the reduction in near-term debt maturities could potentially lead to increased stability in the company’s financial structure, which could be beneficial for shareholders in the long term.
Impact on the World
The exchange agreements between CTO Realty Growth and its noteholders represent a common occurrence in the corporate world. Companies often negotiate debt restructurings to improve their financial positions, and this move by CTO is unlikely to have a significant impact on the broader economy.
Conclusion
CTO Realty Growth’s announcement of privately negotiated exchange agreements for its 3.875% Convertible Senior Notes marks a strategic move to extend the maturity of its debt and improve its financial profile. Shareholders may benefit from this move through increased financial stability, while the broader impact on the world economy is expected to be minimal.
- CTO Realty Growth enters into exchange agreements for 3.875% Convertible Senior Notes
- New notes will have extended maturity date of April 15, 2030
- Impact on CTO Realty Growth: Improved debt profile and financial flexibility
- Impact on shareholders: Potential for increased financial stability
- Impact on the world: Minimal
