Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

Insiders transaction

[incomedreamer11]

Aug 15/23 10% Holder Slate Asset Management LP Direct Ownership

Public market buy Trust Units 1.402 -50,000 1.7%        2,953,251

Aug 14/23 10% Holder Slate Asset Management LP Direct Ownership

Public market buy Trust Units 1.438- 17,200 0.6%        2,903,251

Aug 11/23 10% Holder Slate Asset Management LP Direct Ownership

Public market buy Trust Units 1.417 -15,000 0.5%         2,886,051

[rad10]

Maybe they know some sales are progressing? Debt ratios seem sky high.

[Detailoriented1]

Well that is an interesting development. SLAM is buying SOT units on the open market.  Hmmm, is Armoyan finally having success getting them to put their money behind SOT.  Just opportunistic based on price or is something bigger being cooked up?  Time will tell. GLTA

[pennydredful]

Could  be  money   going  out  of  one their pockets  in  to  another  pocket  :   as   follows    The  seller is the   ATM   offering  they  set  up and  SOT    use   that   money  to  cover  some  of  the

[incomedreamer11]

Armpoyan found another REIT for investment * G2S2 CAPITAL INC. ANNOUNCES INVESTMENT IN MORGUARD REAL ESTATE INVESTMENT TRUST * G2S2 CAPITAL INC- WHOLLY OWNED SUBSIDIARY, ARMCO ALBERTA ACQUIRED 50,000 UNITS OF MORGUARD AT A PRICE OF $5.51 PER UNIT Source text for Eikon: 

[rad10]

Or they are jacking up the unit price, because any debenture conversion will be around VWAP.....  this will make the dilution somewhat less drastic.

[Meesha1]

Thats not how it works. The debentures cannot be redeemed by Slate until 1yr before maturity. In that 1yr window they could satisfy the redemption (principal + interest) by issuing shares at 95% of the price of the units when the redemption is announced. The $157 mln of debentures cost them $10.6 mln in interest per year. They currently pay $10.2 mln per year in distributions. So the next step in

[rad10]

So why are insiders buying? There must be some asset sales pending.  

[Meesha1]

I agree. Unless it was just a symbolic purchase (It wasn't that much after all. Lets see if they do more), it doesn't make sense without asset sales. Unit repurchases are accretive to NAV, but they increase leverage, which is their biggest threat right now. I'm assuming they aren't insane.