SAN DIEGO, Aug. 7 /PRNewswire/ -- Burnham Pacific Properties, Inc.
(NYSE: BPP) today announced that, in connection with the Company's pursuit of
its strategic alternatives, the Company and its preferred stockholders that
are affiliates of Westbrook Partners have entered into an agreement pursuant
to which Westbrook agreed to suspend any rights that it may have as a result
of its purported election to exercise a right to a Change of Control
Preference under the terms of the Company's preferred stock. If valid, the
election of a Change of Control Preference would have the effect of
prohibiting the Company from making distributions to the holders of the
Company's common stock until the preferred stock has been redeemed. As
previously announced, the Company does not agree with the position taken by
Westbrook, but the parties do not believe that it is necessary to resolve the
matter given that the Company's Board of Directors has not concluded its
review of the Company's strategic alternatives. Additionally, pursuant to the
agreement the Company has agreed that Westbrook may in the future revive the
rights it has, if any, as a result of the election.
Despite the purported election by Westbrook of a Change of Control
Preference, there can be no assurance that there will be a change of control
transaction involving the Company or any assurances with respect to the terms
upon which any such transaction could be consummated. In addition, there can
be no assurance that the Company will continue paying regular quarterly
distributions to its common stockholders.
Burnham Pacific is a real estate investment trust (REIT) that focuses on
value-added retail real estate opportunities throughout the United States.
The Company makes available on a quarterly basis supplemental information that
includes property and corporate level detail which is available upon request.
More information on Burnham Pacific may be obtained by calling 800.462.5181,
or visiting the Company's web site at http://www.burnhampacific.com.
This news release contains "forward-looking statements" that predict or
indicate future events or trends or that do not relate to historical matters.
There are a number of important factors that could cause actual events to
differ materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, uncertainties in the strategic
alternative process, the validity of the election of the Change of Control
Preference and the impact of that election on the payment of future dividends,
as well as other factors discussed in the Company's periodic reports filed
with the Securities and Exchange Commission, including, without limitation,
the risk factors that were disclosed in our Form 10-K that was filed with the
SEC on March 30, 2000. You should be aware that the risk factors contained in
that Form 10-K may not be exhaustive. Therefore, we recommend that you read
the information in that Form 10-K together with other reports and documents
that we file with the SEC from time to time, including our Forms 10-K, 10-Q
and 8-K which may supplement, modify, supersede or update those risk factors.
SOURCE Burnham Pacific Properties, Inc.
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Related links:
http://www.burnhampacific.com
CONTACT:
Daniel B. Platt, Chief Financial Officer of
Burnham Pacific Properties, Inc., 619-652-4700, fax 619-652-4711,
dbplatt@bpac.com
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