Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 42

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 42
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 was discussed. At this meeting, the Board discussed a number of challenges in the commercial office space market and a number of other short-term and long-term challenges faced by the Company, including access to debt
financing. Members of our management team indicated that Bidder A had completed more due diligence since its initial outreach and that Bidder A had identified several credible groups with whom it envisioned partnering in order to finance a Strategic
Alternative, which the Board noted enhanced Bidder A’s credibility. The Board instructed management to negotiate a non-disclosure agreement with Bidder A in order to allow it to review certain non-public due diligence materials and instructed Mr. Farrar to work with JLL Securities and Raymond James in order to discuss alternative groups that may be interested in pursuing a Strategic Alternative
transaction.

On May 21, 2024, the Board held a meeting, which the Company’s senior management attended, to further discuss the April 22
Proposal and the Company’s entry into a non-disclosure agreement with Bidder A, as well as an update on Bidder A’s access to a virtual data room (the “VDR”) containing due diligence
materials regarding the business and operations of the Company. The Board unanimously approved entry into a non-disclosure agreement with Bidder A. The Board expressed support for management to meet with other
potential acquirors based on JLL Securities’ market intelligence during this period. The Board noted that in recent years, there were limited groups interested in the office building space due to the impact of
COVID-19. Later that day a non-disclosure agreement was entered into between the Company, Bidder A and Bidder A’s financial partner, a significant real estate
investor, that Bidder A had identified as the primary source of equity financing for the proposed transaction. The non-disclosure agreement contained customary standstill restrictions. Over the next two weeks,
Bidder A conducted a due diligence review of the Company.

On June 5, 2024, Bidder A submitted a revised letter of intent to acquire the Company,
which included a purchase price range of either (i) $7.00 to $8.00 per share of the Company, conditioned upon the assumption of the Company’s property-level indebtedness, or (ii) $6.00 to $7.00, which assumed that all of the Company’s
debt would be refinanced as part of the proposed transaction. Later that day, representatives from Bidder A spoke to representatives from JLL Securities and indicated that