Morguard North American Residential REIT Announces Completion of its Previously Announced Public Offering of $75 Million of Convertible Debentures

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[{"type":"text","content":"\n\n\n\nMorguard North American Residential REIT Announces Completion of its Previously Announced Public Offering of $75 Million of Convertible Debentures\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\n\n\n\n\n\n\nCanada NewsWire\nMISSISSAUGA, ON, Feb. 13, 2018\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/ \n\n\n\nMISSISSAUGA, ON, Feb. 13, 2018 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the \"REIT\") (TSX: MRG.UN) announced today that it has completed its previously announced public offering (the \"Offering\") with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities, on a bought deal basis, of $75 million aggregate principal amount of 4.50% convertible unsecured subordinated debentures due March 31, 2023 (the \"Debentures\"). The Debentures are convertible, at the option of the holder, into trust units of the REIT at $20.20 per trust unit. As part of the transaction, Morguard Corporation purchased $5 million aggregate principal amount of the Debentures at the offering price. Morguard Corporation currently holds an approximate 46.9% effective interest in the REIT through ownership of Units and Class B LP Units.\n\nThe REIT intends to use a portion of the net proceeds from the Offering to fund the redemption of all of the REIT's 4.65% convertible unsecured subordinated debentures (current outstanding principal balance of approximately $60 million) which mature on March 30, 2018. The REIT intends to use the remainder of the net proceeds of the Offering to fund future acquisitions, for debt repayment and for general trust purposes.\n\nCopies of the REIT's short form prospectus are available on SEDAR at www.sedar.com.\n\nThe securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, \"U.S. persons\" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This pre...

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