PROREIT Announces $35 million Public Offering of Convertible Debentures
MONTRÉAL, May 17, 2023 (GLOBE NEWSWIRE) -- PRO Real Estate Investment Trust (TSX: PRV.UN) (“PROREIT” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters co-led by TD Securities Inc. and Scotiabank (collectively, the “Underwriters”), pursuant to which the Underwriters will purchase $35 million aggregate principal amount of 8.00% convertible unsecured subordinated debentures (the “Debentures”) due June 30, 2028 at a price of $1,000 per Debenture (the “Offering”). PROREIT has also granted to the Underwriters an over-allotment option to purchase up to an additional $5,250,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments.
- PROREIT will use the net proceeds of the Offering to partially repay existing debt currently drawn on the REIT's operating facility and for general business and working capital purposes.
- The Debentures will be direct, unsecured obligations of PROREIT, subordinated to other senior indebtedness of PROREIT.
- Subject to specified conditions, PROREIT will have the right to repay the outstanding principal amount of the Debentures, on maturity or redemption, through the issuance of Units.
- PROREIT will also have the option to satisfy its obligation to pay interest through the issuance and sale of Units.