Allied Properties REIT gets consent for six series of debentures

By Mary-Katherine Stinson

Lexington, Ky., May 30 – Allied Properties Real Estate Investment Trust has obtained consents for six series of debentures and will hold a meeting to approve the extraordinary resolution for one series, according to a press release.

The REIT received consents from holders representing over 66 2/3% of the total principal amount of each of the following series: its 3.394% series D senior debentures due Aug. 15, 2029, its 3.113% series E senior debentures due April 8, 2027, its 3.117% Series F senior debentures due Feb. 21, 2030, its 3.131% series G senior debentures due May 15, 2028, its 1.726% series H senior debentures due Feb. 12, 2026 and its 3.095% series I senior debentures due Feb. 6, 2032.

The meeting scheduled for June 1 regarding these series of notes will be canceled.

However, the meeting at 10 a.m. ET on June 1 regarding the 3.636% series C senior debentures due April 21, 2025 will proceed in order to adopt an extraordinary resolution approving the debenture amendments.

Allied will pay a consent fee of $0.10 per $1,000 principal amount of debentures to each eligible holder who responded to the consent solicitation and provided consent and voting instructions. The consent fee will not be paid unless Allied and the debenture trustee enter into the supplemental indenture giving effect to the amendments.

In addition to the approval of unitholders obtained on May 2, the proposed conversion to an open-end trust is conditional on Allied receiving a satisfactory tax ruling from the Canada Revenue Agency to confirm that no material adverse tax consequences would arise to either Allied or its unitholders because of the conversion. The amendments will not be implemented unless Allied receives a satisfactory ruling and resolves to complete its conversion.

The amendments were proposed in connection with Allied’s planned conversion from a closed-end trust to an open-end trust and certain amendments to Allied’s amended and restated declaration of trust dated May 3, 2022 and the management information circular of Allied dated March 21.

The consent solicitation was launched May 5.

Toronto-based Allied Properties is a real estate investment trust that owns, manages and develops office properties in Canada.

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