Morguard North American Residential REIT closes offering of convertible debentures

On January 24, 2018, Morguard North American Residential Real Estate Investment Trust ("Morguard NAR REIT" or the "REIT") announced that it entered into an agreement with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities Inc., for the purchase by the underwriters, on a bought deal basis, of C$70,000,000 aggregate principal amount of 4.50% convertible unsecured subordinated debentures due March 31, 2023. In response to increased investor demand, on January 25, 2018, the REIT amended the terms of its previously announcement agreement, increasing the aggregate principal amount of convertible unsecured subordinated debentures offered to C$75,000,000.

The closing of the offering was announced on February 13, 2018.

Morguard NAR REIT 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$10,500,000 aggregate principal amount of debentures and the underwriters respective "Over-Allocation Position" as at the closing date. On February 16, 2018, Morguard NAR REIT announced that the underwriters exercised their over-allotment option in full. Settlement of the over-allotment option occurred on February 21, 2018.

The REIT intends to use a portion of the net proceeds to fund the redemption of all of the REIT's 4.65% convertible unsecured subordinated debentures (current outstanding principal balance of approximately C$60 million), maturing on March 30, 2018. The REIT intends to use the remainder of the net proceeds to fund future acquisitions, for debt repayment and for general trust purposes.

Morguard North American Residential REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 16 Canadian residential apartment communities, located in Alberta and Ontario, and 30 U.S. residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland consisting of approximately 13,000 residential suites.

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