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Killam Apartment REIT Announces Increase in Size to Previously Announced Public Offering of Trust Units from $50 Million to $60 Million
Killam Apartment REIT Announces Increase in Size to Previously Announced Public Offering o...
About this update from Killam Apartment Reit
[{"type":"text","content":"\n\n\n\nKillam Apartment REIT Announces Increase in Size to Previously Announced Public Offering of Trust Units from $50 Million to $60 Million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nHALIFAX, NS, July 21, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n HALIFAX, NS, July 21, 2020 /CNW/ - Killam Apartment REIT (\"Killam\") (TSX: KMP.UN) is pleased to announce that, due to strong demand, it has increased the size of its previously announced public offering of trust units (the \"Units\"). Killam has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, on a bought deal basis, 3,510,000 Units for $17.10 per Unit for gross proceeds of $60,021,000 (the \"Offering\").\nKillam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 526,500 Units, exercisable up to 30 days after closing of the Offering. \nKillam intends to use the net proceeds from the Offering to repay amounts outstanding on its credit facility (current outstanding balance of approximately $40 million), to fund future acquisitions and developments and for general trust purposes.\nUpon completion of the Offering and the use of proceeds, Killam expects to have access to approximately $100 million of available capital through its credit facilities. In addition, the equity component in the majority of Killam's active development projects has been substantially funded and remaining construction costs are expected to be funded through construction financing facilities. \nKillam's rent collection experience since the onset of the COVID-19 pandemic has remained strong. As of the date of this press release, Killam has collected 98.0% of total rents for June, including 99.7% of apartment, 98.7% of MHC and 77.3% of commercial rents. Killam is actively following up with those accounts in arrears. July rent collection is generally in line with th...