Transaction|March 15, 2013
Morguard North American Residential REIT announces public offering of C$95 million of trust units and C$60 million of convertible debentures
Torys acted as counsel to the underwriters with a team that included Simon Knowling, Michael Zackheim and Christine Hunter (corporate/securities), Andy Gibbons (Canadian real estate), Mark Graham (U.S. real estate), Michael Fortier (environmental), Corrado Cardarelli and Richard Johnson (tax).
On March 15, 2013, Morguard North American Residential REIT (the REIT) announced that it closed its previously announced public offering with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities with RBC Capital Markets acting as bookrunner, on a bought deal basis, of 8,270,000 trust units (the "Units") at a price of $11.50 per Unit representing gross proceeds of $95,105,000 and $60,000,000 aggregate principal amount of 4.65% convertible unsecured subordinated debentures due March 30, 2018. The Debentures are convertible at the option of the holder into trust units of the REIT at a conversion price of $15.50 per trust unit.
As part of the transaction, Morguard Corporation purchased $10,005,000 of the Units being offered, being 870,000 Units, at the offering price and C$5 million aggregate principal amount of the debentures. Morguard Corporation currently holds an approximate 48.80% effective interest in the REIT through ownership of Units and Class B LP Units.
The net proceeds from the Offering will be used to partially fund the acquisition of 3,752 multi-family residential units in the U.S. for gross consideration of US$457.8 million, as previously announced on January 9, 2013, and for general trust purposes.
Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust with a strategic focus on the acquisition of high-quality multi-unit residential properties in Canada and the United States.
Further information can be found on Morguard's website.
As part of the transaction, Morguard Corporation purchased $10,005,000 of the Units being offered, being 870,000 Units, at the offering price and C$5 million aggregate principal amount of the debentures. Morguard Corporation currently holds an approximate 48.80% effective interest in the REIT through ownership of Units and Class B LP Units.
The net proceeds from the Offering will be used to partially fund the acquisition of 3,752 multi-family residential units in the U.S. for gross consideration of US$457.8 million, as previously announced on January 9, 2013, and for general trust purposes.
Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust with a strategic focus on the acquisition of high-quality multi-unit residential properties in Canada and the United States.
Further information can be found on Morguard's website.