Summit Industrial Income REIT Announces Completion of $230 Million Equity Offering
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Summit Industrial Income REIT ("Summit" or the "REIT") (TSX:SMU-UN.TO) announced today that it has completed its previously announced public offering (the "Offering") of 17,836,500 subscription receipts (the "Subscription Receipts") at a price of $12.90 per subscription receipt for total gross proceeds of approximately $230 million, which includes proceeds from the full exercise of an over-allotment option to purchase an additional 2,326,500 subscription receipts. The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets. The Subscription Receipts will commence trading on the Toronto Stock Exchange today under the ticker symbol SMU.R.
The REIT intends to use the net proceeds from the Offering to finance, in part, the purchase price for the REIT's previously announced acquisition of 37 light industrial properties in Alberta for an aggregate purchase price of approximately $588 million (collectively, the "Acquisitions").
The Acquisitions are expected to close on or about November 1, 2019. On closing of the Acquisitions: (i) one unit of the REIT ("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 from and including October 17, 2019, to and including the date immediately preceding the date Units are issued to holders, 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.
If the Acquisitions fail to close by December 31, 2019, or the Acquisitions are terminated at an earlier time, the gross proceeds of the Offering 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.
About SummitSummit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our web site at www.summitIIreit.com.
Caution Regarding Forward Looking InformationThis news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "goal" and similar expressions are intended to identify forward-looking information or statements. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, outlook and anticipated events or results. Some of the specific forward looking statements contained herein include statements with respect to the following: the use of proceeds of the Offering.
A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward looking information for anything other than its intended purpose. Summit undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Summit Industrial Income REIT
View original content: http://www.newswire.ca/en/releases/archive/October2019/17/c4476.html
SOURCE: Summit Industrial Income REIT
Paul Dykeman, CEO at (902) 405-8813, email@example.com