Slate Office REIT - CEO, Steve Hodgson
CEO, Steve Hodgson
Source: Slate Office REIT
  • Slate Office REIT (SOT.UN) has closed its previously-announced bought-deal public offering
  • The public offering was by way of its short-form base shelf prospectus dated April 29, 2021, as supplemented by a prospectus supplement dated October 19, 2022
  • The underwriters purchased $45 million aggregate principal amount of 7.50 per cent convertible unsecured subordinated debentures of the REIT
  • Slate Office REIT is a global owner and operator of high-quality workplace real estate
  • Slate Office REIT was down 1.094 per cent, trading at C$4.52 at 1:41 PM ET

Slate Office REIT (SOT.UN) has closed its bought-deal public offering.

The public offering was by way of its short-form base shelf prospectus dated April 29, 2021, as supplemented by a prospectus supplement dated October 19, 2022.

CIBC Capital Markets, BMO Capital Markets and RBC Capital Markets acted as joint bookrunners for the offering on behalf of a syndicate of underwriters which also included TD Securities Inc., Scotia Capital Inc., National Bank Financial Inc., Raymond James Ltd., Canaccord Genuity Corp., iA Private Wealth Inc., Cormark Securities Inc. and Laurentian Bank Securities Inc..

The underwriters purchased $45 million aggregate principal amount of 7.50 per cent convertible unsecured subordinated debentures of the REIT.

The REIT has also granted the underwriters an option to purchase up to an additional $6.75 million of 7.50 per cent convertible unsecured subordinated debentures of the REIT 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.

The REIT has received conditional approval from the Toronto Stock Exchange to list the Debentures on the TSX.

The net proceeds from the offering will be used to partially fund the REIT’s previously-announced US$19.8 million acquisition of a newly retrofitted Class A office property located in Chicago, Illinois,

The proceeds will also be used to reduce the REIT’s secured indebtedness and for other general corporate purposes, which could include execution of the REIT’s normal course issuer bid in accordance with applicable securities laws.

The debentures bear an annual interest rate of 7.50 per annum, payable semi-annually in arrears on June 30 and December 31 in each year commencing June 30, 2023.

The June 30, 2023 interest payment will represent accrued interest for the period from October 24, 2022, to June 30, 2023.

Slate Office REIT is a global owner and operator of high-quality workplace real estate.

Slate Office REIT was down 1.094 per cent, trading at C$4.52 at 1:41 PM ET.



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