Morguard North American Residential REIT completes offering of convertible debentures
On March 9, 2023, Morguard North American Residential Real Estate Investment Trust (the "REIT") announced the completion of its previously announced public offering with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities Inc., on a bought deal basis, of C$50 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures due March 31, 2028. The debentures are convertible, at the option of the holder, into trust units of the REIT at C$24.15 per unit.
As part of the transaction, Morguard Corporation purchased C$5 million aggregate principal amount of the debentures offered.
The REIT also granted the underwriters an over-allotment option exercisable at any time up to 30 days after closing, to acquire additional debentures up to the lesser of C$6,750,000 aggregate principal amount of debentures and the underwriters' respective "Over-Allocation Position" as at the closing date. The closing of an additional C$6 million under the over-allocation position was announced on March 17, 2023, increasing the gross proceeds from the offering to C$56 million.
The REIT intends to use the net proceeds from the offering, together with existing liquidity, to fund the redemption of all its outstanding 4.50% convertible unsecured subordinated debentures, which were issued on February 13, 2018, scheduled to mature on March 31, 2023 and have a par call date of April 1, 2022.
Further information can be found on Canada Newswire’s website.
Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in Canadian residential apartment communities, located in Alberta and Ontario, and U.S. residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland.