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

An offer from GA

[HRc60to65]

GA can put an hostile offer at 0.80$ to 1.00$ per unit.

Noreason to offer more, stock price lower than 0.50$ and book value at 2.00$.

0.80$ it is 60% premium to the stock price.

[pennylane101]

When I saw the heading for your post, my first thoughts were..."oh, there is an offer from Armoyan.  Surprise, surprise."  ;0) The Welch brothers also target undervalued companies.  They could buy the company, wait a few years and then sell the properties at a profit since  their focus is now on "essential" real estate.  Flipping real estate can be

[TVR]

Current market cap for SOT.UN  is $40 million so somebody like Armoyan or another REIT could potentially take it over for, say, $60 million.  Problem is that does not change the precarious financial status of the REIT.  The debt issue still has to be dealt with and that is another $200 million'ish  in some form.  I doubt Armoyan has the level of financial resources for

[HRc60to65]

The debentures can be exchanged for preferred shares. If the buyer has an excess oft equity over debts superior to 250M$ he has enough equity to takeover SOT without putting a penny in the transaction.  1$ per sot.un paid in the buyer shares.

[rad10]

  How many capital restructurings / reorganizations have you been through HR? Using this forum to discuss fantasies is all very well.  Debentures have a change of control clause.     This is heading to a restructuring.  After the secured lenders have been made whole, the remainder will go to debentures.

[HRc60to65]

I was a shareholders in many capital restructurings / reorganizations (more than 10)

[pennylane101]

I found this online.  This is in the Indenture to one of Slate Office Reit's debentures.  The heading is "Change of Control"   https://leede.ca/wp-content/uploads/slate-180119.pdf Change of Control Upon the occurrence of a Change of Control, the REIT will be required to make an offer in writing to purchase, in whole or in part, the Debentures then outstanding

[TVR]

Re: Change of Control: Depending on the specifics of how a change in control is defined it would appear that anyone who wants to make an offer for the existing equity units, including Armoyan or SAM, would have to buy out the debentures as well.  Since that is unliklely to happen it would appear the debenture holders are the ones who decide whether or not any recapitalization proposal is

[rad10]

  hey great to have the overall IQ on this forum significantly elevated by your presence TVR. PS love those cars!

[Tree2tree]

TVR just one additional comment.  If the potential restructuring does not infringe in any way on the existing value and rights of the debenture holders, then there is no need for the debenture holders to be involved in the restructuring discussions.

[rad10]

  yes that's the one......  lol minor obstacle.  The debentures aren't worthless by any means.  A recapitalization will need to have debentures onside even though they are unsecured.  Rest assured there is an ad hoc committee of debenture holders somewhere laying out a deal for the residual equity. No proposal will be made without consulting a working

[Tree2tree]

Good digging Penny.  This appears to be for some other debentures, not our listed debentures.  Chances are there is similar language for all the debentures - I will check SEDAR when I get a chance.  This clause would make the debentures even stronger than I thought.  It also makes a takeover more challenging - the buyer will have to line up alternative financing to pay off any

[HRc60to65]

Same for all debentures (9%, 7.5% and 5.5%) Change of Control Upon the occurrence of a Change of Control, the REIT will be required to make an offer in writing to purchase, in whole or in part, the Debentures then outstanding (the “Debenture Offer”), on a date (the “Offer Date”) which is not later than 30 days following the date upon which the REIT provides notice of the Change of Control to the

[rad10]

  HR - good job.   Thanks for confirming yet more of what I have been telling you all along.....  

[rad10]

  good digging?????  You bought debentures without even looking at the indenture?  You just blindly buy busted converts without knowing anything about them? Tree2tree......  what due diligence do you actually undertake?  You pontificate nonsense on this forum, and bash the views of others - yet you have done minimal homework. Is "Art of the Deal" the

[Tree2tree]

TVR you said "Only logical way out I can see is for somebody to get the debenture holders on side for a 100% debt to equity conversion."  But then you said yourself why it's not logical - why would somebody go to the trouble and expense of buying the company, only to have it majority owned by the debenture holders?  So the idea of the debentures somehow getting converted to