VANCOUVER, March 28, 2016 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) (the "Company"), announced today that it has commenced an underwritten public offering of 8,000,000 shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock.
The Company intends to use the net proceeds from the offering to repay certain indebtedness and for general working capital purposes, including future acquisitions, creating reserves for capital expenditures, tenant improvements and leasing commissions. In addition, the Company expects to offer to acquire approximately 1,000,000 shares of the Company's common stock and common units from the Second City Group for cash at a price per common unit or share of common stock equal to the public offering price per share in this offering less underwriting discounts and commissions. Completion of the offering is subject to customary closing conditions.
Deutsche Bank Securities is acting as the sole book-running manager for the offering. Janney Montgomery Scott LLC, Wunderlich Securities, Inc., Oppenheimer & Co. Inc., and D.A. Davidson & Co. are acting as joint-lead managers for the offering.
The offering may be made only by means of a prospectus supplement and accompanying prospectus. Copies of the prospectus and the prospectus supplement relating to the offering, when available, may be obtained by contacting Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, by calling (800) 503-4611, or by emailing firstname.lastname@example.org.
A registration statement relating to these securities has been filed with and declared effective by the U.S. Securities and Exchange Commission on May 18, 2015. This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on owning high-quality office properties in attractive markets primarily in the Southern and Western United States. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
This press release contains "forward looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward looking statements. Forward looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include factors described in our news releases and filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015, which has been filed with the Securities and Exchange Commission. Readers of this press release are cautioned to consider these risks and uncertainties and not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to publicly update any forward-looking statement, whether written or oral, relating to matters discussed in this press release, except as may be required by applicable securities laws.
City Office REIT, Inc.
Anthony Maretic, CFO
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SOURCE City Office REIT, Inc.