City Office REIT Inc (NYSE:CIO) saw its units lose some spark Thursday morning, after reporting a six-million common stock offering.
The company, based in Vancouver, has priced the underwritten public offering of 6,000,000 shares of its common stock for total gross proceeds of $83.1 million, before offering expenses.
The offering is expected to close on October 7 subject to the satisfaction of customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock.
Including the issuance of 8,000,000 shares pursuant to the Company’s at-the-market program during the third quarter, the Company expects that 53,647,063 shares of common stock will be outstanding immediately following this offering, excluding the underwriters’ option to purchase additional shares.
CIO intends to use the net proceeds from the offering for the repayment of amounts outstanding under its unsecured credit facility and for general working capital purposes, including funding future acquisitions, capital expenditures and investments.
BMO Capital Markets, Raymond James and RBC Capital Markets are acting as the book-running managers for the offering. The book-running managers may offer the shares from time to time in negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading 18-hour cities in the Southern and Western United States.
City Office currently owns or has a controlling interest in 5.9 million square feet of office properties
Shares sank 21 cents, or 1.5%, to $14.16
