Transaction|April 18, 2012
Morguard North American Residential REIT completes C$75 million initial public offering of trust units
Torys acted as counsel to the syndicate of underwriters with a team that included Simon Knowling, Philip Mohtadi, Michael Zackheim, Christine Hunter and Stephen Abrahamson (corporate/securities), David Dell and Andy Gibbons (Ontario real estate), Corrado Cardarelli and Grace Pereira (Canadian tax), Michael Fortier (environmental), Andrew Bedford and Renee Matthews (Alberta corporate/real estate), Gavin Scotti (U.S. corporate/real estate), Andy Beck and Christopher Roehrig (U.S. securities) and Peter Keenan and Ari Feder (U.S. tax).
On April 18, 2012, Morguard Corporation (Morguard) (TSX: MRC) and Morguard North American Residential Real Estate Investment Trust (the REIT) (TSX: MRG.UN) announced the closing of the REIT's initial public offering of 7,500,000 trust units at a price of C$10.00 per trust unit for gross proceeds of C$75.0 million. The offering was underwritten by a syndicate of underwriters co-led by RBC Dominion Securities Inc. and TD Securities Inc.
The underwriters have an option to purchase up to an additional 750,000 trust units at a price of C$10.00 per trust unit for a period of 30 days after closing which, if exercised in full, would increase the total gross proceeds of the offering to C$82.5 million. Morguard retained an approximate 69.7% effective interest in the REIT (or an approximate 67.6% effective interest in the REIT if the over-allotment option is exercised in full).
The net proceeds from the offering, together with the assumption of mortgage debt secured against such properties and C$25.0 million advanced under the REIT's unsecured subordinated credit facility, were used by the REIT to indirectly acquire interests in a portfolio of 14 Canadian multi-unit residential properties and three U.S. multi-unit residential properties from Morguard located in Ontario, Alberta and Louisiana. The portfolio of acquired properties had an IFRS value of approximately C$676.9 million.
Further information can be found on Canada Newswire's website.
The underwriters have an option to purchase up to an additional 750,000 trust units at a price of C$10.00 per trust unit for a period of 30 days after closing which, if exercised in full, would increase the total gross proceeds of the offering to C$82.5 million. Morguard retained an approximate 69.7% effective interest in the REIT (or an approximate 67.6% effective interest in the REIT if the over-allotment option is exercised in full).
The net proceeds from the offering, together with the assumption of mortgage debt secured against such properties and C$25.0 million advanced under the REIT's unsecured subordinated credit facility, were used by the REIT to indirectly acquire interests in a portfolio of 14 Canadian multi-unit residential properties and three U.S. multi-unit residential properties from Morguard located in Ontario, Alberta and Louisiana. The portfolio of acquired properties had an IFRS value of approximately C$676.9 million.
Further information can be found on Canada Newswire's website.