CIM Commercial Trust begins tender offer for series L preferreds

By Sarah Lizee

Olympia, Wash., Oct. 22 – CIM Commercial Trust Corp. launched a cash tender offer to purchase up to 2,693,580 shares of its series L preferred stock, or one‑third of the outstanding amount.

The purchase price will be $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.

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

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

The tender offer will expire at 9 a.m. ET on Nov. 20 unless extended.

Tenders may be withdrawn at any time prior to the expiration time.

The tender offer is not conditioned on any minimum or maximum number of shares being tendered, but is subject to some other conditions. If more than 2,693,580 shares are tendered and not withdrawn, the company will purchase shares from all tendering shareholders on a pro rata basis.

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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