Adventus Realty Trust Announces Successful Completion of Previously Announced Major Portfolio Refinancing and Separate Closing of Convertible Debenture Refinancing

August 17, 2021

Adventus Realty Trust, by its Trustee Adventus Realty Services Inc. (the “Trust”), is pleased to announce the successful closing of two major financing initiatives which have significantly strengthened the balance sheet of the Trust. All dollar amounts  are in US dollars unless otherwise noted.

Major Portfolio Refinancing

In July 2021, the Trust completed its previously announced major portfolio refinancing of eight existing properties for gross proceeds of $350.0 million and secured a new non-recourse first mortgage with respect thereto. The refinancing loan was  originated by a US subsidiary of the Credit Suisse Group, has an initial maturity date of 
July 9, 2023, and includes three, one-year extension options at the sole option of the Trust. The new loan is interest-only at a variable rate of 30-day LIBOR plus  3.735% and is cross-collateralized by three Chicago and five Atlanta properties. The Trust received net proceeds of approximately $90.0 million after repayment of existing mortgages and associated fees, transaction costs and the reservation of  approximately $10.0 million for existing leasing obligations. The reserved funds are expected to be recovered within the first year, subject to any changes in the anticipated timing or scope of the relevant leasehold expenditures.

Convertible Debenture Refinancing

In July 2021, the Trust entered into a financing arrangement with a Canadian private lender that provides a non-revolving convertible debenture facility of up to CAD $50.0 million. The convertible debenture facility bears interest at 7% on all drawn  amounts, is convertible into common units of the Trust at US $15.00 per unit and matures on July 22, 2023. A standby fee of 1.5% is payable on the undrawn portion of the facility. The maturity date may be extended by mutual agreement of the lender  and the Trust. On July 22, 2021, the Trust drew an initial advance of CAD $35.0 million.

Cancellation of Discounted Common Equity and Preferred Equity Offerings

The major portfolio refinancing and convertible debenture refinancing have provided Adventus with much more attractive financing terms than the previously proposed offerings of discounted common equity and preferred equity. Accordingly, Adventus  will not be proceeding with either of these equity offerings at this time.

Use of Proceeds

Proceeds from these two significant financing initiatives were used, in part, for repayment of the 9.0% credit facilities outstanding (totaling $40.6 million); repayment of the 8% and 9.15% CAD denominated convertible debentures (totaling CAD $35.0  million); and repayment of the current portion of USD denominated 8% convertible debentures (totaling $1.2 million). The balance of proceeds will be used for capital expenditures in respect of existing properties owned by the Trust and for working capital.

As a result of the above transactions, the Trust’s subordinated debt structure has been simplified and now includes only convertible debentures with 2023 maturity dates held by one Canadian-based private lender (CAD $50.0 million facility above)  and several non-institutional individual investors who are all significant equity holders in the Trust.

More information will be available in our Report to Unitholders for the six months ended June 30, 2021, expected to be released by the end of August 2021.

About Adventus

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.

Cautionary Statements Regarding Forward-Looking Statements

This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of  properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary  statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors  that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application  thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as  a result of new information, future developments or otherwise.

ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.

Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer

Investors News Releases Adventus Realty Trust Announces Successful Completion of Previously Announced Major Portfolio Refinancing and Separate Closing of Convertible Debenture Refinancing