Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 12

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 12
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 the Company (“PSU Award”), whether vested or unvested, will automatically become fully vested with respect to a number
of shares of Common Stock underlying such PSU Award based on the actual level of achievement of the performance-based vesting conditions applicable to such PSU Award measured through immediately prior to the Effective Time, as determined by the
Board or a committee thereof in accordance with the terms of such PSU Award, and be cancelled and converted into the right to receive an amount in cash equal to (i) (A) the Common Stock Merger Consideration, multiplied by (B) the number of
so-determined shares of Common Stock underlying such PSU Award, less (ii) any applicable withholding taxes.

Financing of the Merger (page 86)

Parent has informed us that in connection with the closing of the Merger, Parent expects to assume or prepay the outstanding indebtedness under our unsecured
credit facility, our outstanding term loan and certain mortgage loans. As of June 30, 2025, we had approximately $647 million in aggregate principal amount of consolidated indebtedness outstanding, including $258 million under our unsecured credit
facility, $25 million under our term loan and $367 million under our mortgage loans.

5

As of the date hereof, the term loan has been repaid from the net proceeds from the sale of certain of the
Phoenix Assets and no amounts remains outstanding.

We anticipate that the total amount of funds necessary to complete the Merger, the sale of the
Company’s Phoenix Assets and the other transactions contemplated by the Merger Agreement will be approximately $1.1 billion, including estimated funds needed to (i) pay the Common Stock Merger Consideration and the Preferred Stock Merger
Consideration due to holders of Common Stock and Preferred Stock, respectively, under the Merger Agreement, (ii) make payments in respect of outstanding RSU Awards and PSU Awards pursuant to the Merger Agreement and (iii) pay, redeem or otherwise
terminate, or assume, any outstanding net indebtedness of the Company and its subsidiaries. Parent has received an equity commitment from Elliott in an aggregate amount of up to $275 million (the “Equity Financing”) and a financing
commitment from affiliates of Apollo Global Real Estate Management, L.P. (collectively, “Apollo”) to provide debt financing in the form of a loan with an aggregate principal amount of up to $400 million (the “Debt
Financing”).

The Merger Agreement does not contain a financing condition to