MISSISSAUGA, ON, Dec. 16, 2014 /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 and/or alternative Canadian trading
platforms.
The notice provides that Morguard may, during the twelve month
period commencing December 21, 2014
and ending December 20, 2015,
purchase for cancellation up to 2,250,000 units ("Units) in total,
being approximately 10% of the public float of outstanding
Units. The daily repurchase restriction for the Units is
8,548. Additionally, Morguard may purchase for cancellation
up to $5,500,000 principal amount of
the 4.65% Convertible Unsecured Subordinated 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 $3,359.
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, 2014, no Units and no
Debentures were purchased for cancellation during the last twelve
months. As of December 11, 2014
there were 29,307,786 Units of Morguard outstanding with an average
daily trading volume for the prior six months of 34,195.
Additionally, as of December 11, 2014
there were $60,000,000 principal
amount Debentures of Morguard outstanding with an average daily
trading volume for the prior six months of $13,436.
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