Real Estate Split Corp. Announces Overnight Offering

GlobeNewswireMar 23, 2023 3:31 PM EDT

Not for distribution to U.S. Newswire Services or for dissemination in the United States.

TORONTO, March 23, 2023 (GLOBE NEWSWIRE) -- Middlefield Group, on behalf of Real Estate Split Corp. (TSX: RS and RS.PR.A) (the “Company”), is pleased to announce that the Company is undertaking an overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively).

The sales period for this overnight offering will end at 9:00 a.m. (ET) on Friday, March 24, 2023. The offering is expected to close on or about March 30, 2023 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Class A Shares will be offered at a price of $14.60 per Class A Share to yield 10.7% and the Preferred Shares will be offered at a price of $9.65 per Preferred Share to yield 5.4%. The closing price on the TSX for each of the Class A Shares and Preferred Shares on March 22, 2023 was $14.93 and $9.68, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at March 22, 2023), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The Company’s investment objectives for the:

Class A Shares are to provide holders with:

(i) non-cumulative monthly cash distributions; and

(ii) the opportunity for capital appreciation through exposure to the portfolio

Preferred Shares are to:

(i) provide holders with fixed cumulative preferential quarterly cash distributions; and

(ii) return the original issue price of $10.00 to holders upon maturity.

Middlefield Capital Corporation provides investment management advice to the Company.

The syndicate of agents for the offering is being co-led by CIBC Capital Markets and RBC Capital Markets.