- What Slate has received notices of default on its revolving credit facility
- Why It had an indebtedness ratio of 67.8%
- What next The Toronto-based REIT does not expect to make upcoming interest payments on outstanding debentures
Slate Office REIT has received notices of default on its revolving credit facility.
The Toronto-based REIT announced on Tuesday that senior lenders had provided notices of default on the line of credit.
The move restricts Slate from making payments of accrued interest on its outstanding debentures. There is no assurance when, or if, a cure or waiver will be achieved in respect to the defaults.
As such, it does not expect to make cash interest payments on its 7.50% convertible unsecured subordinated debentures and 5.50% convertible unsecured subordinated debentures, which are due on June 30.
The REIT also does not expect to make the cash interest payment on its outstanding 9% convertible unsecured subordinated debentures, which are due on August 31.
Failure to pay interest on the debentures within 15 days of the aforementioned due dates will put Slate into default on the debt.
In Q3 2023, the trust introduced a Portfolio Realignment Plan intended to improve its liquidity, refine its portfolio and strengthen its balance sheet through reduced debt.
Slate reported a comprehensive loss of $19.5m in Q1 2024. It had total assets of $1.7b and debt of $1.16b, giving it an indebtedness ratio of 67.8%.
Slate Office REIT owns and operates assets in Canada, the United States and Ireland, including Woodbine & Steeles Corporate Centre in Markham and West Metro Corporate Centre in Toronto. Brady Welch is chief executive and Robert Armstrong is chief financial officer.