Morguard REIT completes C$150 million offering of convertible unsecured subordinated debentures

Torys acted as counsel to the syndicate of underwriters with a team that included Simon Knowling, Michael Fortier, Graham Rawlinson, Andrew Wong, Nooreen Bhanji, Mark DiGiovanni and Mohammed Muraj

On October 31, 2012, Morguard Real Estate Investment Trust (TSX:MRT.UN) (the REIT) announced that it had completed its issuance of C$150 million aggregate principal amount of 4.85% convertible unsecured subordinated debentures due October 31, 2017 (the Debentures). The offering was underwritten on a bought deal basis by a syndicate of underwriters co-led by RBC Dominion Securities Inc. and TD Securities Inc., with RBC Dominion Securities Inc. acting as bookrunner, and also included BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc. and National Bank Financial Inc.

The Debentures bear interest at a rate of 4.85% per annum, payable semi-annually commencing on April 30, 2013 and are convertible at the option of the holder into trust units of the REIT at $24.60 per trust unit. The Debentures are listed on the TSX under the symbol "MRT.DB.A.".

The REIT intends to use the net proceeds of the offering to fund a portion of the C$374.3 million purchase price of its recently announced acquisition of Penn West Plaza (207 & 213-9th Avenue S.W., Calgary, Alberta).

Further information can be found on the REIT's website.