trending Market Intelligence /marketintelligence/en/news-insights/trending/t6b3wirc1bi_c8nlk2ojfg2 content esgSubNav
In This List

Dream Office REIT plans to repurchase up to 10 million series A units

Video

S&P Capital IQ Pro | Powering Your Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Enterprises are missing out on 24B by not optimizing cloud spending not going multicloud


Dream Office REIT plans to repurchase up to 10 million series A units

Dream Office REIT intends to kick off a repurchase program for up to 10.0 million of its outstanding series A real estate investment trust units and is in advanced talks to raise and extend its primary revolving credit facility.

The company plans to repurchase the units at $24.00 apiece in cash, with the purchase price representing a 7% premium over the March 22 closing price of the units on the Toronto Stock Exchange. Assuming Dream Office REIT buys back 10.0 million units under the proposed program, the total purchase price will be $240.0 million.

The company plans to use cash on hand and existing credit facilities to finance the buyback.

The amendments to the revolver will see the facility upsized to $575 million from $400 million, with an expected maturity of March 1, 2021.

The interest rate is expected to remain in the form of rolling one-month bankers' acceptances bearing interest at the BA rate plus 170 basis points, or at the bank's prime rate plus 70 basis points.