MISSISSAUGA, ON, Dec. 14, 2016 /CNW/ - Morguard North American
Residential Real Estate Investment Trust (TSX: MRG.UN) (the
"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 systems.
The notice provides that Morguard may, during the twelve month
period commencing December 21, 2016
and ending December 20, 2017,
purchase for cancellation up to 2,237,224 units ("Units) in total,
being approximately 10% of the public float of outstanding
Units. The daily repurchase restriction for the Units is
7,618. 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 $11,385.
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, 2016, 70,400 Units were
purchased for cancellation at an average weighted price per unit of
$10.43 and no Debentures were
purchased for cancellation during the last twelve months. As
of December 8, 2016 there were
29,288,870 Units of Morguard outstanding with an average daily
trading volume for the prior six months of 30,474.
Additionally, as of December 8, 2016
there were $60,000,000 principal
amount Debentures of Morguard outstanding with an average daily
trading volume for the prior six months of $45,543.
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.
About Morguard North American Residential REIT
Morguard is an unincorporated, open-ended real estate investment
trust which owns, through a limited partnership, interests in a
portfolio of 15 Canadian residential apartment communities, located
in Alberta and Ontario, and 31 U.S. low-rise and mid-rise,
garden-style apartment communities located in Alabama, Colorado, Florida, Georgia, Louisiana, North
Carolina and Texas
consisting of more than 13,000 residential suites.
For more information, please visit Morguard.com.
SOURCE Morguard North American Residential Real Estate
Investment Trust