Corvex, Related offer to buy 51% of CommonWealth's credit agreement

theflyonthewall.com

Corvex Management and Related Fund Management, whose funds collectively own approximately 9.6% of the outstanding common shares of CommonWealth REIT, issued the following statement regarding misleading statements made by CommonWealth and its representatives regarding the effects of the removal of the entire board of trustees on CommonWealth's outstanding debt obligations: "In order to put an end to CommonWealth's scare tactic campaign and alleviate any shareholder concern we hereby commit that, in the event our consent solicitation is successful and shareholders remove the entire board of trustees, Corvex and Related will immediately offer to buy 51% of the outstanding debt under each of CommonWealth's revolving credit agreement and term loan at par value, so that no acceleration of such loans will occur. Since no such acceleration will occur, cross-acceleration provisions included in other CommonWealth debt obligations will not be triggered and should be of no concern to shareholders. We continue to believe that the removal of the entire board is the only way to effect meaningful change, a position shared by both ISS and Glass Lewis, and we are gratified by the show of support from both large and retail investors. We hope that in light of the foregoing commitment, CommonWealth's trustees will now cease threatening their own shareholders."