Summit Industrial Income REIT announces $60M bought deal




pcNewsWire Summit Industrial Income REIT (TSX: SMU.UN) has entered into an agreement with a syndicate of underwriters co=led by BMO Capital Markets and CIBC Capital Markets for a bought deal of 8,490,000 units at $7.07 per unit for gross proceeds of approximately $60 million.

Proceeds will be used to reduce outstanding indebtedness, which may be subsequently redrawn and applied as needed for funding of future acquisitions, and for general trust purposes.

News Release

Summit Industrial Income REIT Announces $60 Million Bought Deal Equity Offering

Toronto, Ont. – June 20, 2017: Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has entered into an agreement with a syndicate of underwriters coled
by BMO Capital Markets and CIBC Capital Markets (collectively, the “Underwriters”) to sell, on a bought deal basis, 8,490,000 units of the REIT (the “Units”) at a price of $7.07 per Unit for gross proceeds to Summit of approximately $60 million (the “Offering”). In addition, Summit has granted the Underwriters an over‐allotment option to purchase up to an additional 1,273,500 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. BMO Capital Markets is the sole bookrunner on the Offering. The Offering is expected to close on or about June 30, 2017 and is subject to customary conditions, including the approval of the Toronto Stock Exchange.

The REIT intends to use the net proceeds from the Offering to reduce outstanding indebtedness, which may be subsequently redrawn and applied as needed for funding of future acquisitions, and for general trust purposes. The REIT is currently in negotiations in connection with opportunities that may be suitable for the potential acquisition of several light industrial properties located in the REIT’s main target markets. If such opportunities are to materialize, their completion will be subject to a number of conditions consistent with the REIT’s ordinary acquisition practices, including the execution of purchase and sale agreements and completion of due diligence.

The Units will be offered by way of a prospectus supplement to the REIT’s short form base shelf prospectus dated April 26, 2017, which prospectus supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada on June 22, 2017.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the “1933 Act”) and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

About Summit

Summit 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.