- Slate Office REIT (SOT.UN) has announced plans to acquire an Irish entity and has closed its public offering of subscription receipts and unsecured debentures
- Together with the previously announced $5.8 million private placement to Slate Asset Management L.P. the total gross proceeds of the offering and private placement are expected to be approximately $135.8 million
- Slate Office REUIT 5.5 per cent Extendible Convertible Unsecured Subordinated Debentures (SOT.DB.A) are up 1.02 per cent and are trading at $99.00 per share as of 11:17 a.m
- Slate Office REIT Subscription Receipts (SOT.R) are down 0.01 per cent trading at $4.84 per share as of 11:23 a.m. ET
- Slate Office REIT (SOT.UN) is down 1 per cent and is trading at $4.95 per share as of 11:20 a.m. ET
Slate Office REIT (SOT.UN) has offered to acquire Irish Entity and closed a $130M bought deal offering.
The public offering consisted of subscription receipts and 5.50 per cent extendible convertible unsecured subordinated debentures.
The subscription receipts generated gross proceeds of approximately $55 million and the unsecured debentures generated proceeds of $75 million.
The subscription receipts and debentures began trading today on the TSX under the ticker symbols SOT.R and SOT.DB.A.
The closing of the proposed acquisition is subject to the satisfaction of the following escrow release conditions:
- One trust unit of the REIT will be automatically issued in exchange for each subscription receipt without payment of additional consideration or further action by the holder thereof
- An amount per subscription receipt equal to the amount per unit of any cash distributions made by the REIT which record dates have occurred during the period from and including November 19, 2021, immediately preceding the date units are issued, or deemed to be issued, to holders
- The net proceeds from the sale of the Subscription Receipts and the Debentures will be released from escrow to or as directed by the REIT
It is expected that each debenture will be convertible into units at the option of the holder at a conversion rate of approximately 153.8462 units per $1,000 principal number of debentures, which is equal to a conversion price of $6.50 per unit.
Together with the previously announced $5.8 million private placement to Slate Asset Management L.P. the total gross proceeds of the offering and private placement are expected to be approximately $135.8 million.
Slate will maintain its approximate 9.5 per cent interest in the REIT through ownership of Units and Class B LP Units following the closing.
Slate Office REIT 5.5 per cent Extendible Convertible Unsecured Subordinated Debentures (SOT.DB.A) are up 1.02 per cent and are trading at $99.00 per share as of 11:17 a.m.
Slate Office REIT Subscription Receipts (SOT.R) are down 0.01 per cent trading at $4.84 per share as of 11:23 a.m. ET.
Slate Office REIT (SOT.UN) is down 1 per cent and is trading at $4.95 per share as of 11:20 a.m. ET.
