Morguard North American Residential REIT Announces Public Offering of $60 Million of Trust Units

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[{"type":"text","content":"\n\n\n\nMorguard North American Residential REIT Announces Public Offering of $60 Million of Trust Units\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\nMISSISSAUGA, ON, Dec. 15, 2016\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/\n\n\n\nMISSISSAUGA, ON, Dec. 15, 2016 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the \"REIT\") (TSX:MRG.UN) announced today that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities (collectively, the \"Underwriters\"), to issue to the public, subject to regulatory approval, on a bought deal basis, 4,370,000 trust units (the \"Units\") at a price of $13.75 per Unit representing gross proceeds of $60,087,500 (the \"Offering\"). The REIT has granted the Underwriters an over-allotment option, exercisable at any time up to 30 days after closing of the Offering, to acquire additional Units up to the lesser of 655,500 Units and the Underwriters' respective \"over-allocation position\" as at the closing date.\n\nAs part of the transaction, Morguard Corporation has agreed to purchase approximately $10 million of the Units being offered, being 730,000 Units, at the offering price. Morguard Corporation currently holds an approximate 48.7% effective interest in the REIT through ownership of Units and Class B LP Units. Upon closing of the Offering, Morguard Corporation will hold an approximate 46.0% effective interest in the REIT through ownership of Units and Class B LP Units (45.4%, assuming the exercise in full of the Underwriters' over-allotment option). \n\nThe net proceeds from the Offering will be used to fund future acquisitions, repay debt and for general trust purposes. \n\nThe REIT will, by December 21, 2016, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, excluding Quebec, a preliminary short form prospectus relating to the issuance of the Units.&#x...

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