/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
MISSISSAUGA, ON, Dec. 15, 2016 /CNW/ - Morguard North American
Residential Real Estate Investment Trust (the "REIT") (TSX:MRG.UN)
announced today that it has reached an agreement with a syndicate
of underwriters co-led by RBC Capital Markets and TD Securities
(collectively, the "Underwriters"), to issue to the public, subject
to regulatory approval, on a bought deal basis, 4,370,000
trust units (the "Units") at a price of $13.75 per Unit representing gross proceeds of
$60,087,500 (the
"Offering"). The REIT has granted the Underwriters an
over-allotment option, exercisable at any time up to 30 days after
closing of the Offering, to acquire additional Units up to the
lesser of 655,500 Units and the Underwriters' respective
"over-allocation position" as at the closing date.
As part of the transaction, Morguard Corporation has agreed to
purchase approximately $10 million of
the Units being offered, being 730,000 Units, at the offering
price. Morguard Corporation currently holds an approximate
48.7% effective interest in the REIT through ownership of Units and
Class B LP Units. Upon closing of the Offering, Morguard
Corporation will hold an approximate 46.0% effective interest in
the REIT through ownership of Units and Class B LP Units (45.4%,
assuming the exercise in full of the Underwriters' over-allotment
option).
The net proceeds from the Offering will be used to fund future
acquisitions, repay debt and for general trust purposes.
The REIT will, by December 21,
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 Units. Closing of the Offering
is expected to occur on or about January 9,
2017.
The Units have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or
benefit of, "U.S. persons" (as defined in Regulation S under the
United States Securities Act of 1933, as amended). This press
release does not constitute an offer to sell or a solicitation of
an offer to buy any of the Units in the
United States or to, or for the account or benefit of, U.S.
Persons.
About Morguard North American Residential REIT
The
REIT 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.
Forward-Looking Information
Certain information in
this press release may constitute forward-looking statements that
involve a number of risks and uncertainties. Statements contained
herein that are not based on historical or current fact, including
without limitation, statements containing the words "anticipates",
"believes", "may", "continue", "estimate", "expects" and "will" and
words of similar expression, constitute "forward-looking
statements". Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, events or developments to be materially different
from any future results, events or developments expressed or
implied by such forward-looking statements. Such factors include,
among others, the following: general economic and business
conditions, both nationally and in the regions in which the REIT
operates; changes in business strategy or development/acquisition
plans; environmental exposures; financing risk; existing
governmental regulations and changes in, or the failure to comply
with, governmental regulations; liability and other claims asserted
against the REIT; and other factors referred to in the REIT's
filings with Canadian securities regulators. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Morguard Residential REIT does not
assume the obligation to update or revise any forward-looking
statements.
SOURCE Morguard North American Residential Real Estate
Investment Trust