Automotive Properties closes $7M in additional proceeds

Executive Summary

• Automotive Properties REIT has completed the exercise of its $7 million overallotment option and additional subscription options, bringing the total gross proceeds of the offering to approximately $57 million.
• The transaction involved the sale of 428,200 units to underwriters and 201,247 units to the Dilawri Group, both priced at $11.11 per unit.
• Net proceeds are designated primarily for repaying indebtedness related to the acquisition of three automotive dealership properties in Dorval, Quebec, with any balance reserved for general trust purposes.

Key Details

• Overallotment Option Exercise:
  • Sold 428,200 units to the syndicate of underwriters.
  • Price: $11.11 per unit.
  • Gross Proceeds: Approximately $4.8 million.
• Additional Subscription Option Exercise:
  • Sold 201,247 units to a member of the Dilawri Group on a private placement basis.
  • Price: $11.11 per unit.
  • Gross Proceeds: Approximately $2.2 million.
  • Restriction: Units are subject to a statutory hold period of four months plus one day from the date of issuance.
• Total Offering Metrics:
  • Total Gross Proceeds: Approximately $57 million.
• Use of Proceeds:
  • Repayment of indebtedness under credit facilities, specifically debt incurred to finance the cash portion of the acquisition of three automotive dealership properties in Dorval, Quebec.
  • Remaining balance, if any, to be used for general trust purposes.

Notable Quotes

• None provided in the text.