Morguard North American Residential REIT Announces Refinancing of Four GTA Properties

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[{"type":"text","content":"\n \n \n \n Morguard North American Residential REIT Announces Refinancing of Four GTA Properties\n \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 Canada NewsWire\n \n \n \n \n \n MISSISSAUGA, ON\n \n ,\n \n Nov. 15, 2021\n \n /CNW/ - Morguard North American Residential REIT (the \"REIT\") (TSX: MRG.UN) today announced it has closed the CMHC-insured financing on four properties, located in\n \n Toronto\n \n and\n \n Mississauga, Ontario\n \n , providing gross mortgage proceeds of\n \n $194.2 million\n \n , at a weighted average interest rate of 2.72% and for a weighted average term of 10.5 years.\n \n \n Concurrently, the REIT redeemed the Class C limited partnership units (\"Class C LP Units\") of Morguard NAR Canada Limited Partnership held by Morguard Corporation (\"Morguard\"). The Class C LP Units were entitled to priority distributions in satisfaction of financial obligations related to the Retained Debt (defined below) and any associated tax payable by Morguard. The Retained Debt had a mortgage balance at maturity associated with the refinanced properties of\n \n $74.2 million\n \n at a weighted average interest rate of 3.97%, resulting in net proceeds of\n \n $120.0 million\n \n , before financing costs and any associated tax payable.\n \n \n Morguard retained, as primary obligor, the mortgages on four properties (\"Retained Debt\") that were sold to the REIT and also retained the deferred financing costs associated with the Retained Debt. Morguard remained responsible for the interest and principal payments on the Retained Debt, and the Retained Debt was secured by a charge on each of the properties. As consideration for the Retained Debt, Morguard received Class C LP Units on which distribution payments were made in an amount expected to be sufficient to permit Morguard to satisfy amounts payable with respect to: (i) the principal and interest under the Retained Debt; and (ii) the amount of tax that is due and payable that is reasonably attributable to any distributions on the Class C LP Units.\n \n \n \n About Morguard North American Residential REI...

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