TransGlobe Apartment REIT completes C$247.3 million initial public offering of trust units and C$25 million secured credit facility

Torys acted as counsel to the syndicate of underwriters with a team that included Patricia Koval, Simon Knowling, Graham Rawlinson, Michael Zackheim, Daniel Raglan, Corrado Cardarelli, Grace Pereira, Michael Fortier, Ed Fan, Nicole Mantini, Zeynab Ziaie Moayyed, Eli Monas, Theresa Gregoire and Raymond Archer. Torys also acted as special U.S. counsel to TransGlobe REIT in its private placement of trust units in the United States with a team that included Daniel Raglan, Simon Knowling and Michael Zackheim. Torys also represented CIBC in its secured credit facility with a team that included David Dell, Amanda Kieswetter, Theresa Gregoire and Leslie Stacey.

On May 14, 2010, TransGlobe Apartment REIT (TSX: TGA.UN) announced the closing of its previously announced initial public offering of units at a price of C$10.00 per unit for gross proceeds of approximately C$247.3 million. The offering was underwritten by a syndicate of underwriters led by CIBC and including RBC Capital Markets, TD Securities Inc., BMO Nesbitt Burns Inc., Citigroup Global Markets Canada Inc., Canaccord Genuity Corp., Scotia Capital Inc., National Bank Financial Inc. and Dundee Securities Corporation. The underwriters have an option to purchase up to an additional 2,472,900 trust units at a price of C$10.00 per unit for a period of 30 days after closing of the offering and, if exercised in full, will increase the total gross proceeds of the offering to approximately C$272 million.

The net proceeds from the offering, together with the assumption of approximately C$455 million in mortgage debt secured against such properties and the issuance of C$20 million in convertible secured debentures, was used by TransGlobe REIT to acquire a portfolio of 65 residential rental properties containing approximately 8,200 suites principally located in urban centres in Alberta, Ontario, Québec, New Brunswick and Nova Scotia. The portfolio of acquired properties had an appraised value of between C$776 and C$791 million.

Concurrently with the closing of the initial public offering, TransGlobe REIT also completed a C$25 million secured operating credit facility with CIBC, with an option to increase the available amount to C$40 million. The credit facility is available to be used by TransGlobe REIT for future acquisitions and working capital purposes.

Further information is found on Canada Newswire's website.