Adventus Announces Convertible Debenture Refinancing

December 21, 2018

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.

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

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