Morguard REIT completes public offering of convertible debentures

On December 7, 2021, Morguard Real Estate Investment Trust (the "REIT") announced that it completed its previously announced public offering, on a bought deal basis, of C$150 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures due December 31, 2026. The debentures are convertible, at the option of the holder, into trust units of Morguard REIT at C$7.80 per unit.

The offering was underwritten by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities Inc. and Scotiabank, with RBC Capital Markets and TD Securities Inc. acting as bookrunners.

As part of the transaction, Morguard Corporation ("Morguard") purchased C$60 million aggregate principal amount of the debentures.

On December 13, 2021, the REIT announced that it successfully closed the issuance of an additional C$9 million aggregate principal amount of the debentures pursuant to the exercise in full of the over-allotment option granted to the syndicate of underwriters in connection with the offering, increasing the gross proceeds of the offering to C$159 million.

The REIT intends to use the net proceeds from the offering, together with existing liquidity, to fund the redemption of all of its outstanding 4.50% convertible unsecured subordinated debentures on December 17, 2021.

Further information can be found on Canada Newswire’s website.

Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 46 retail, office and industrial income producing properties in Canada with a book value of C$2.5 billion and consisting of approximately 8.3 million square feet of leasable space.