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| Prime Retail, Inc. Discloses Limited Discussions With Certain Restricted Preferred Stockholders Concerning Possible Strategic Transaction |
BALTIMORE, June 29 /PRNewswire-FirstCall/ -- Prime Retail, Inc. (the
"Company") (OTC Bulletin Board: PMRE, PMREP, PMREO) today announced that, in
connection with its previously announced exploration of strategic
alternatives, the Company has been engaged in negotiations with a third party
concerning a potential acquisition of the Company. In connection with such
negotiations, Houlihan Lokey Howard & Zukin, the Company's financial advisor,
acting on behalf of the Company, facilitated limited discussions involving
certain holders of the Company's preferred stock who had agreed pursuant to
confidentiality agreements to maintain in confidence any material nonpublic
information concerning the Company disclosed to them. The purpose of such
discussions was to obtain input from holders of the Company's Series A and
Series B preferred stock with respect to the possible allocation of
consideration among the Company's stockholders assuming an acquisition of the
Company resulting in aggregate consideration to the Company's stockholders of
approximately $115 million. In addition, the restricted stockholders were
asked to provide input on an approximate allocation of such consideration
among the Series A preferred stock, Series B preferred stock and the common
stock of $15.90, $8.80 and $0.17, respectively. These allocations were
considered for discussion purposes only and the Company cautions that such
allocations may not reflect the allocations proposed by the Company to
stockholders should an agreement be reached with the third party mentioned
above.
Discussions between the Company and the third party noted above concerning
a potential sale of the Company are ongoing at this time. There can be no
assurance as to the completion, timing or terms of any transaction.
This disclosure is being made in accordance with the terms of the
confidentiality agreements with the preferred stockholders noted above. It
remains the Company's policy not to comment on potential transactions other
than as required by applicable law.
Prime Retail is a self-administered, self-managed real estate investment
trust engaged in the ownership, leasing, marketing and management of outlet
centers throughout the United States. Prime Retail currently owns and/or
manages 37 outlet centers totaling approximately 10.4 million square feet of
GLA. Prime Retail also owns 154,000 square feet of office space. Prime
Retail has been an owner, operator and a developer of outlet centers since
1988. For additional information, visit Prime Retail's website at
http://www.primeretail.com .
Some of the statements contained herein which are not statements of
historical facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that reflect management's
current views with respect to future events and financial performance. The
words "believes," "expects," "anticipates," "estimates" and similar words or
expressions are generally intended to identify forward-looking statements.
Actual results may differ materially from those expected because of various
risks and uncertainties, including, but not limited to, changes in general
economic conditions, adverse changes in real estate markets as well as other
risks and uncertainties included from time to time in the Company's filings
with the Securities and Exchange Commission. The Company accepts no
responsibility for updating forward-looking statements.
The information contained herein is furnished for information purposes
only and is not to be construed as an offer to buy or sell securities.
SOURCE Prime Retail, Inc.
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CONTACT:
Investors, Robert A. Brvenik, Chief Financial
Officer, +1-410-234-1750, or Media, Steven A. Sless, Director -
Public Relations, +1-410-234-8333, both of Prime Retail
