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NorthWest Healthcare Properties REIT Announces Successful Completion of Previously Announced Bought Deal Equity Offering and Full Exercise of Over-Allotment Option for Gross Proceeds of Approximately $172.6 Million
NorthWest Healthcare Properties REIT Announces Successful Completion of Previously Announc...
About this update from Vital Infrastructure Property Trust
[{"type":"text","content":"\n\n\n\nNorthWest Healthcare Properties REIT Announces Successful Completion of Previously Announced Bought Deal Equity Offering and Full Exercise of Over-Allotment Option for Gross Proceeds of Approximately $172.6 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\nTORONTO, July 31, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\nTSX: NWH.UN\n TORONTO, July 31, 2019 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (\"NorthWest\" or the \"REIT\") is pleased to announce today that it has completed its previously announced public offering (the \"Offering\") of 14,628,000 trust units (\"Units\") of the REIT at a price of $11.80 per Unit for total gross proceeds of approximately $172.6 million, which includes proceeds from the full exercise of an over-allotment option to purchase 1,908,000 Units. The Offering was conducted on a bought deal basis through a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and Scotiabank, with RBC Capital Markets and BMO Capital Markets acting as bookrunners. \nThe REIT intends to use the net proceeds of the Offering to repay approximately $120 million of high-cost corporate debt (including the REIT's 7.25% convertible unsecured subordinated debentures maturing October 31, 2019 with an outstanding balance of $38.75 million) with a weighted average interest rate and term to maturity of 7.7% and one year, respectively. The remainder of the net proceeds will be used to complete the previously announced acquisitions of a German medical office building and a rehabilitation hospital for a combined purchase price of approximately $61.5 million (€41.0 million) at a weighted average stabilized capitalization rate of 5.8%.\nThe Units were offered in each of the provinces and territories of Canada pursuant to the REIT's base shelf prospectus dated October 19, 2018. The terms of the Offering are described in a prospectus supplement filed with Canadian securities regulators. A copy ...