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Morguard REIT Announces $175 Million Offering of Convertible Debentures
Morguard REIT Announces $175 Million Offering of Convertible Debentures Morguard R...
About this update from Morguard Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nMorguard REIT Announces $175 Million Offering 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\nMorguard REIT Announces $175 Million Offering of Convertible Debentures\nCanada NewsWire\nMISSISSAUGA, ON, Dec. 8, 2016\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/\n\n\n\nMISSISSAUGA, ON, Dec. 8, 2016 /CNW/ - Morguard Real Estate Investment Trust (\"Morguard REIT\" or the \"REIT\") (TSX:MRT.UN) announced today that it has 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, subject to regulatory approval, of $175,000,000 aggregate principal amount of 4.50% convertible unsecured subordinated debentures due December 31, 2021 (the \"Debentures\"). The Debentures are convertible, at the option of the holder, into trust units of Morguard REIT at $20.40 per trust unit. Morguard REIT has granted an over-allotment option exercisable at any time up to 30 days after Closing, to acquire additional Debentures up to the lesser of $26,250,000 aggregate principal amount of Debentures and the Underwriters respective \"Over-Allocation Position\" as at the closing date.\n\nAs part of the transaction, Morguard Corporation has agreed to purchase $50,000,000 of the Debentures being offered. \n\nMorguard REIT will, by December 14, 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 Debentures. The offering is expected to close on or about December 30, 2016. \n\nThe REIT intends to use the net proceeds from the Offering to fund the redemption of all of the REIT's 4.85% convertible unsecured subordinated debentures (current outstanding balance of $150.0 million) which mature on October 31, 2017 and which have a par call date of November 1, 2016. The REIT intends to use the remainder of the net proceeds, if any, to fund futur...