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Published on 11/22/2019 in the Prospect News Liability Management Daily and Prospect News Preferred Stock Daily.

CIM Commercial sets exchange rate under preferreds tender offer

By Marisa Wong

Los Angeles, Nov. 22 – CIM Commercial Trust Corp. announced it converted into Israeli new shekels the aggregate purchase price of $78,437,049.60 for the 2,693,580 shares of its series L preferred stock accepted for purchase in its tender offer that expired on Wednesday.

CIM said the weighted exchange rate is 3.4616096 shekels per dollar.

As of the expiration time at 9 a.m. ET on Nov. 20, 7,964,328 shares of series L preferred stock were tendered in the offer. The company accepted the shares at a proration factor of about 33.82%.

The shares to be purchased represent one-third of the outstanding shares of series L preferred stock.

As previously reported, the purchase price is $29.12 per share, or 102.64% of the stated value, of which $1.39, or 4.9%, reflects the amount of dividends that will have accrued as of the expiration date. That purchase price was converted to 100.8020716 shekels per share, according to Friday’s press release.

The purchase price, together with past payments and dividends, represents a 1.13 times multiple on invested capital per share, on both a dollar and Israeli shekel basis, since the date of original issuance, as previously announced.

The company expects to fund the purchase from borrowings under its revolving credit facility.

The tender offer was not conditioned on any minimum or maximum number of shares being tendered but was subject to some other conditions.

IBI Ltd. (+972 3 5197915) is the Israeli tender offer coordinator. Georgeson LLC (800 903-2897) the U.S. information agent.

CIM Commercial is a Dallas-based real estate investment trust specializing in office space.


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