EX-99.3 6 cbl-ex993_6.htm EX-99.3

Exhibit 99.3

CBL

CREDIT F ACILITY TERM SHEET

October 27, 2020

Privileged & Confidential

Pr epar ed at the Dir ection of Counsel

Subject to Material Change

Subject to FRE 408

Privileged & Confidential

Prepared at the Direction of Counsel

Subject to Material Change

Term Sheet

Subject to FRE 408

| Ad Hoc Group Proposal
Credit Facilities | > S e cur e d t ak eb ack deb t
‒ Amo u n t: $[950]mm (a m ou n t wi l l b e e q ual t o t he v alue of t he c ol l a te ral) ‒ M a t uri t y: D e c embe r 202 7 ‒ In t e r e st Ra te: L + 3 5 0 bp s (50 bp s fl o or) ‒ Amor t i z a t io n: No n e ‒ Pa yd own: No n e ‒ U p f r ont F ee: N one ‒ Colla te ral: Li e ns on ex is t i n g Bor r owi n g Base p rop e rt ie s; no a dd i t io n al col l a te ral ‒ Guaran t or s: No guaran te e from CBL L P, or i t s succ e s s or; no reco u r s e t o any l e gal e n t i t i e s o t h e r t han entities holding Borrowing Base properties ‒ Fi n anc i al Cov e nan t s: T BD ‒ R e stric t e d Pa yme n t s: No l im i t a t ion on R e stric t e d Pa yme n t s
> P r o ra t a share of $[75 0]mm of ne w p ref e r r e d eq u ity, t o b e shared p ro r a t a amo n g t he Cre d it Faci l i t y cla i m (until payment in full) and bondholder claim: ‒ Es t i m a t e $[173]mm of ne w p ref e r r e d eq u it y o D epe n d i n g u p on t he a m ou n t of n e w sec u red t ak eb ack debt, n e w p ref e r r e d eq u it y m ay b e r e-si ze d t o en sure a p ar r e co v e ry t o th e Cr ed it Fac i l it y b a nk s (i.e. s e c u r e d t a keb ack deb t p l u s ne w p r e f e r r e d equ i t y t o Cre d it Faci l i t y t o e q ual p ar reco v e ry) ‒ [T BD]% P I K d i v i d e nd ‒ V o te s wi t h t he r e organi ze d co mm on eq u it y as a si n gle class on a on e-for-one b asis on all m a tte rs su bm i t te d t o t he h ol de rs of r e organi ze d co mm on eq u it y ‒ O t h e r te rms TBD
Unsecured Bonds | > P r o ra t a share of $[75 0]mm of ne w p ref e r r e d eq u it y (e st im a te d t o e q ual): ‒ Es t i m a t e $[577]mm of ne w p ref e r r e d eq u it y > 90% of r e organi ze d co mm on e q ui ty(1)

2

(1) Subject to dilution from M IP and w arrant s.

Privileged & Confidential

Prepared at the Direction of Counsel

Subject to Material Change

Term Sheet (Cont’d)

Subject to FRE 408

| Ad Hoc Group Proposal
Preferred Equity | > If p r e f e r r e d h o lde rs v o t e in fa v or of th e t ransac t i on, TBD s p l i t of 1 0% of r e orga n i z e d co m m on equ i t y on a pre-diluted basis(1) to be shared with existing common equity and TBD split of Warrants (as defined below) ‒ $5 m m cash o u t o p t ion for ex is t i n g p ref e r r e d ho lde rs on te rms reasona b ly acc ept a b le t o t he Co mp any and R eq u i red Conse nt i n g No t e ho lde rs > If p ref e r r e d ho lde rs v o t e aga i nst t he t ransac t ion as a class, p ref e r r e d ho lde rs shall reco v e r ze ro
Co mm on Equity | > If co mm on eq u it y h ol de rs and s pe cial co mm on u n i t s v o t e i n fa v or of t he t ransac t ion as a class, co mm on shar eh o lde rs a n d s pe c i al co m m on un it h o lde rs sha l l r e c e i v e 1 0% of th e r e orga n i z e d co m m on equ i t y on a p re-d i l u t e d b asis(1) t o b e s p l i t TBD wi t h p ref e r r e d eq u it y > T hr e e war r ant p ackag e s (“W arran t s”); W arran t s t o b e s p l i t T BD bet w ee n p ref e r r e d eq u it y a n d e x is t i n g co mm on eq u it y ‒ Packa g e A: 6.67% 3-ye ar war r an t s wi t h a s t rike p rice wh e re b on d s reco v e r 80% ‒ Packa g e B: 6.67% 3-ye ar war r an t s wi t h a s t rike p rice wh e re b on d s reco v e r 95% ‒ Packa g e C: 6.67% 4-ye ar war r an t s wi t h a s t rike p rice wh e re b on d s reco v e r 110% > If co mm on eq u it y h ol de rs v o t e aga i nst t he t ransac t ion as a class, co mm on eq u it y h ol de rs shall reco v e r ze ro > W arran t s exp ire if t h e y are t ra d i n g at a 35% p re m i u m t o t h e ir stri k e p rice for 9 0 d a y s wi t ho u t exe rcise
Management | > Up t o 10% of r e organi ze d co mm on eq u it y
Incentive Plan
(“MIP”)
Board of Directors | > 1 membe r is CEO > 5 membe rs se le c te d b y R eq u i red Conse nt i n g No t e ho lde rs > 1 membe r s e l e c t e d b y Co mp a n y Par t i e s a n d r e ason ab ly ac cept a b le t o R equ ir e d Co n s ent i n g N o t eh o lde rs

3

(1) Subject to dilution from M IP and w arrant s.

Privileged & Confidential

Prepared at the Direction of Counsel Subject to Material Change Subject to FRE 408

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