MISSISSAUGA, ON, Dec. 18, 2013 /CNW/ - Morguard North American
Residential Real Estate Investment Trust (TSX: MRG.UN) ("Morguard")
announced today that the Toronto Stock Exchange has accepted its
notice of intention to make a normal course issuer bid through the
facilities of the TSX.
The notice provides that Morguard may, during
the twelve month period commencing December
21, 2013 and ending December 20,
2014, purchase for cancellation on the Toronto Stock
Exchange up to 2,300,000 units ("Units) in total, being
approximately 10% of the public float of outstanding Units.
The daily repurchase restriction for the Units is 10,121.
Additionally, Morguard may purchase for cancellation up to
$5,500,000 principal amount of the
4.65% Convertible Unsecured Debentures due March 30, 2018 (TSX:MRG.DB) ("Debentures") being
10% of the public float of outstanding Debentures. The daily
repurchase restriction for the Debentures is $8,644.
The price which Morguard will pay for any such
Units and Debentures will be the market price at the time of
acquisition. The actual number of Units and Debentures which
may be purchased and the timing of any such purchases will be
subject to compliance with the TSX guidelines.
Under the current normal course issuer bid due
to expire December 20, 2013, no Units
were purchased for cancellation during the last twelve
months. As of December 12, 2013
there were 29,286,810 Units of Morguard outstanding with an average
daily trading volume for the prior six months of 40,484.
Additionally, as of December 12, 2013
there were $60,000,000 principal
amount Debentures of Morguard outstanding with an average daily
trading volume for the prior six months of $34,579.
Morguard believes that its Units and Debentures
have been trading in a price range which does not adequately
reflect the value of such Units and Debentures in relation to the
business of Morguard and its future business prospects. As a
result, depending upon future price movements and other factors,
Morguard believes that its outstanding Units and Debentures may
represent an attractive investment for itself. Furthermore,
the purchases may benefit all persons who continue to hold Units by
increasing their equity interest in Morguard. All Units and
Debentures purchased by Morguard under the normal course issuer bid
will be cancelled.
The REIT is an unincorporated, open-ended real
estate investment trust which owns, through a limited partnership,
interests in a portfolio of 14 Canadian residential apartment
communities, located in Alberta
and Ontario, and 30 U.S. low-rise
and mid-rise, garden-style apartment communities located in
Alabama, Colorado, Florida, Georgia, Louisiana, North
Carolina and Texas
consisting of 12,850 residential suites.
SOURCE Morguard North American Residential Real Estate
Investment Trust