Adventus Realty Trust by its Trustee, Adventus Realty Services Inc. ("Adventus" or the "Trust") is pleased to announce it has completed the refinancing of its existing convertible debentures. The existing US$20.9 million of 10.5% convertible debentures maturing in November and December of 2018 have been repaid with proceeds from the issuance of new 8.0% convertible debentures issued in December of 2018. The key terms of the refinancing are as follows:
- CAD$20.0 million and US$11.8 million convertible debentures
- Interest rate of 8.0% per annum
- Two-year term, convertible at the option of the holder into common units at US$17.50 / unit
- Redeemable at the option of the Trust after one year
Michael Iannacone, Chief Financial Officer of the Trust, commented, "The 10.5% convertible debentures were a source of capital used to close on our transformational Riverway property, in November 2016. Earlier this year, we took steps to have an independent financial group undertake a credit review of the Trust, enabling us to support a significant reduction down to 8% in the coupon rate of the new debentures. This makes the new convertible debentures an attractive short to medium term option when compared to raising equity proceeds at a significant discount to our anticipated year-end net asset value. We were very pleased by the support received as we were able to quickly close the placements of the new 8% convertible debentures."
Proceeds from the issuance of the new 8% convertible debentures were also used to repay a short term credit facility, which was utilized in November 2018 to pay off the mortgage payable on the Deerfield property.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. For more information on Adventus, including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.
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ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer