MISSISSAUGA, ON, Dec. 15, 2017 /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, 2017
and ending December 20, 2018,
purchase for cancellation up to 2,552,924 units ("Units") in total,
being approximately 10% of the public float of outstanding
Units. The daily repurchase restriction for the Units is
5,557. 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 $5,125.
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, 2017, Morguard was
approved to purchase up to 2,237,224 Units and $5,500,000 principal amount of Debentures through
the facilities of the TSX and/or alternative Canadian trading
systems. No Units were purchased for cancellation and no
Debentures were purchased for cancellation during the last twelve
months. As of December 8, 2017
there were 33,685,870 Units of Morguard outstanding with an average
daily trading volume for the prior six months of 22,230.
Additionally, as of December 8, 2017
there were $60,000,000 principal
amount Debentures of Morguard outstanding with an average daily
trading volume for the prior six months of $20,500.
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
The Morguard is an unincorporated, open-ended real estate
investment trust which owns, through a limited partnership,
interests in a portfolio of 16 Canadian residential apartment
communities, located in Alberta
and Ontario, and 30 U.S.
residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North
Carolina, Virginia and
Maryland consisting of
approximately 13,000 residential suites.
For more information, please visit Morguard.com.
SOURCE Morguard North American Residential Real Estate
Investment Trust