Arena Investors Calls for Greater Transparency from Terra Property Trust and Seeks Explanation for the Company's Downgraded Debt

Core Viewpoint - Arena Investors expresses significant concerns regarding Terra Property Trust's lack of transparency and responsiveness to investor inquiries, particularly in light of the repeated downgrades of its notes due in 2026 [1][2][4]. Group 1: Rating and Performance - The 6.00% notes due 2026 were initially rated BBB- by Egan-Jones Rating Company at the time of Arena's purchase in June 2021, but have since been downgraded to B as of May 31, 2024 [2][3]. - Non-Performing Loans for Terra have increased alarmingly from $89 million in June 2023 to$192 million in June 2024, indicating a significant deterioration in performance [3]. Group 2: Communication and Engagement - Arena has made multiple requests for information over nearly one year, but Terra has not responded to any inquiries or provided necessary updates, undermining investor confidence [4][5]. - Since November 20, 2023, Terra has refused to engage in one-on-one investor calls, citing ongoing evaluations of a direct listing or conversion to a non-traded REIT, yet no progress has been reported [4]. Group 3: Potential Actions - In response to the lack of engagement from Terra, Arena is considering forming an ad hoc group of noteholders to protect their rights and evaluate further necessary actions [2][4].