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SOT.UN. SLATE. NEW ISSUE $8.10I own it and again did not register that the strength indicated a new issue. Cominar was seller. NEWSToggle navigationMORE Slate Office REIT (SOT.UN - TSX) TORONTO, Jan. 17, 2018 (GLOBE NEWSWIRE) -- Slate Office REIT (TSX:SOT.UN) (the "REIT") announced today that it has agreed to acquire seven office properties located in the Greater Toronto Area and Atlantic Canada for an aggregate purchase price of $191.4 million (the “Acquisitions”) representing $192 per square foot. In conjunction with the Acquisitions, the REIT has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and National Bank Financial Inc. (the “Underwriters”) to issue $90 million of subscription receipts and $25 million aggregate principal amount of convertible unsecured subordinated debentures, in each case on a “bought deal” basis (collectively, the “Offerings”). The Acquisitions are part of a portfolio of real estate assets to be sold by Cominar Real Estate Investment Trust (“Cominar”) and which are the subject of a sale contract among Slate Acquisitions Inc. (on behalf of Slate Canadian Real Estate Opportunity Fund I (“SCREO”)) and Cominar. The REIT will acquire the assets that comprise the Acquisitions for $191.4 million. Highlights of the Acquisitions The purchase price for the Acquisitions is $191.4 million, representing $192 per square foot The Acquisitions are expected to be immediately accretive to the REIT’s 2018 AFFO per unit on a leverage-neutral basis Strategically located in markets where the REIT has an existing presence with scale 93% occupied Weighted average lease term of 4.9 years Total of 995,091 square feet of gross leasable area (“GLA”), increasing total GLA to 7.4 million square feet The Acquisitions will increase the occupancy of the REIT’s portfolio by approximately 100 basis points Summary of the Acquisitions ASSET LOCATION GLA (SQUARE FEET) OCCUPANCY 81 ALBERT STREET MONCTON, NB 64,954 100 % 84-86 CHAIN LAKE DRIVE HALIFAX, NS 77,666 97 % 570 QUEEN STREET FREDERICTON, NB 69,708 87 % 225 DUNCAN MILL ROAD TORONTO, ON 155,872 89 % 105 MOATFIELD TORONTO, ON 248,981 100 % 95 MOATFIELD TORONTO, ON 156,426 100 % 5500 NORTH SERVICE ROAD BURLINGTON, ON 221,484 80 % TOTAL/WEIGHTED AVERAGE 995,091 93 % Subscription Receipts In conjunction with the Acquisitions, the REIT has agreed to sell to the Underwriters, on a bought deal basis 11,112,000 subscription receipts (the “Subscription Receipts”) of the REIT at a price of $8.10 per Subscription Receipt for gross proceeds of approximately $90 million. The REIT has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the Subscription Receipts (or in certain circumstances, units of the REIT (“Units”)) on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. On closing of the Acquisitions: (i) one Unit will be automatically issued in exchange for each Subscription Receipt (subject to customary anti-dilution protection), without payment of additional consideration or further action by the holder thereof, (ii) an amount per Subscription Receipt equal to the amount per Unit of any cash distributions made by the REIT for which record dates have occurred during the period that the Subscription Receipts are outstanding, net of any applicable withholding taxes, will become payable in respect of each Subscription Receipt, and (iii) the net proceeds from the sale of the Subscription Receipts will be released from escrow to the REIT. The net proceeds from the sale of the Subscription Receipts will be used to fund a portion of the purchase price for the Acquisition and will be held by an escrow agent pending the fulfillment or waiver of all outstanding conditions precedent to closing of the Acquisitions. The Acquisitions will be conditional upon the satisfaction of certain conditions including completion of the sale of the Subscription Receipts and minority unitholder approval at a meeting of unitholders (the “Unitholder Meeting”). There can be no assurance that closing conditions will be met or that the Acquisitions will be consummated. If the Acquisitions fail to close as described above by July 31, 2018, or the Acquisitions are terminated at an earlier time, the gross proceeds of the sale of the Subscription Receipts and pro rata entitlement to interest earned or deemed to be earned on the Subscription Receipts, net of any applicable withholding taxes, will be paid to holders of the Subscription Receipts and the Subscription Receipts will be cancelled. The Acquisitions are expected to close by the end of March 2018. |
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Msg # | Subject | Author | Recs | Date Posted |
4868 | Re: SOT.UN. SLATE. NEW ISSUE $8.10 | 3ed | 1 | 1/19/2018 11:45:11 AM |