Slate Retail REIT Announces Results of Its Substantial Issuer Bid

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Slate Retail REIT Announces Results of Its Substantial Issuer Bid

Thursday, February 21, 2019

Category:

Dateline:

TORONTO

Public Company Information:

TSX:
SRT.U
TSX:
SRT.UN

TORONTO--(BUSINESS WIRE)--Slate Retail REIT (TSX: SRT.U) (TSX: SRT.UN) (the "REIT"), an owner and operator of U.S. grocery-anchored real estate, announced today the results of its substantial issuer bid to purchase (the “Offer”) for cancellation up to 4,210,526 Class U units, (the “Class U Units”) at a purchase price per Class U Unit of C$12.54 (the “Purchase Price”). The Offer expired at 5.00 p.m. Eastern time on February 20, 2019.

Based on the final count by TSX Trust Company, the depositary for the Offer (the “Depositary”), a total of 336,563 Class U Units were properly tendered to the Offer and not withdrawn. In accordance with the terms and conditions of the Offer, the REIT has taken up and will purchase for cancellation all of the Class U Units properly tendered and not withdrawn for an aggregate purchase price of C$4.2 million, excluding fees and expenses relating to the Offer.

“As a result of the Offer, we are extremely pleased with the feedback we received from many of our institutional and long-term unitholders who expressed their support for our business and the REIT’s strategy. Specifically, at the Purchase Price the overwhelming majority of the REIT’s investors were not sellers of their units,” commented Greg Stevenson, the REIT’s Chief Executive Officer. “We remain thankful for the support of our fellow unitholders and continue to believe that at prevailing market prices the REIT’s units represent a significant investment opportunity.”

Highlights

  • The 336,563 Class U Units tendered under the Offer represent 0.8% of the issued and outstanding Class U Units as of February 20, 2019, prior to giving effect to the Offer.
  • Since the first quarter of 2018, when the REIT began repurchasing its Class U Units, the REIT will have repurchased an aggregate of 2,554,814 Class U Units, including those under the Offer, equal to 5.5% of the Class U Units outstanding at the inception of the repurchase strategy.
  • After giving effect to the Offer, 43,972,291 Class U Units will remain outstanding.
  • The REIT’s normal course issuer bid (the “NCIB”) was suspended during the period of the Offer and is now effective. Management intends to continue to make repurchases of outstanding Class U Units under the NCIB if attractive pricing persists.

The REIT will make payment for the Class U Units tendered and accepted for purchase by tendering the aggregate purchase price to the Depositary on or before February 26, 2019 in accordance with the Offer and applicable laws and the Depositary will effect payment to unitholders promptly thereafter. Payment for Class U Units will be made in cash, without interest. Any Class U Units invalidly tendered or tendered and not purchased will be returned to the tendering unitholder promptly by the Depositary.

The full terms and conditions of the Offer are described in detail in the offer to purchase and issuer bid circular of the REIT dated January 16, 2019, as well as the related letter of transmittal and notice of guaranteed delivery, which are available under the REIT’s SEDAR profile at www.sedar.com.

Forward Looking Statements
Certain information herein constitutes “forward-looking statements” within the meaning of applicable securities legislation. These statements reflect management’s expectations and include, but are not limited to: the approximate number of Class U Units expected to be issued and outstanding following completion of the Offer; and payment mechanics for the Class U Units purchased under the Offer. Statements that contain words such as “could”, “should”, “would”, “can”, “anticipate”, “expect”, “does not expect”, “believe”, “plan”, "budget”, “schedule”, “estimate”, “intend”, “project”, “will”, “may”, “might”, “continue” and similar expressions or statements relating to matters that are not historical facts constitute forward-looking statements.

These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on the REIT’s current estimates and assumptions, which are subject to significant risks and uncertainties. The REIT believes that these statements are made based on reasonable assumptions; however, there is no assurance that the events or circumstances reflected in these forward-looking statements will occur or be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to the risks that are more fully discussed under the “Risk Factors” section of the annual information form of the REIT for the year ended December 31, 2017.

About Slate Retail REIT (TSX: SRT.U / SRT.UN)
Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.5 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REIT’s conservative payout ratio, together with its diversified portfolio and quality tenant covenants, provides a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. Visit slateretailreit.com to learn more about the REIT.

About Slate Asset Management L.P.
Slate Asset Management L.P. is a leading real estate investment platform with over $6 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

Contact:

Investor Relations
+1 416 644 4264
ir@slateam.com

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