/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
MISSISSAUGA, ON, Dec. 13, 2021 /CNW/ - Morguard Real Estate
Investment Trust ("Morguard REIT" or the "REIT") (TSX: MRT.UN),
announced today that it has successfully closed the issuance of an
additional $9 million aggregate
principal amount of its 5.25% convertible unsecured subordinated
debentures due December 31, 2026 (the
"Debentures") pursuant to the exercise in full of the
over-allotment option granted by the REIT to the syndicate of
underwriters in connection with the REIT's previously announced
offering of $150 million aggregate
principal amount of Debentures, which closed on December 7, 2021. The gross proceeds from the
offering (the "Offering"), including the proceeds from the exercise
of the over-allotment option, are $159
million. The Debentures are listed on the Toronto Stock
Exchange under the symbol MRT.DB.A.
The REIT intends to use the net proceeds from the Offering,
together with existing liquidity, to fund the redemption on
December 17, 2021 of all of the
REIT's 4.50% convertible unsecured subordinated debentures (current
outstanding principal balance of approximately $175 million).
The syndicate of underwriters was co-led by RBC Capital Markets,
TD Securities Inc. and Scotiabank, with RBC Capital Markets and TD
Securities Inc. acting as bookrunners.
The Debentures, and the units of the REIT underlying the
Debentures, 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 securities in the United States or to, or for the account or
benefit of, U.S. Persons.
About Morguard REIT
Morguard REIT is a closed-end real estate investment trust,
which owns a diversified portfolio of 46 high quality retail,
office and industrial income producing properties in Canada with a book value of $2.5 billion and consisting of approximately 8.3
million square feet of leasable space.
Certain information in this press release may constitute
forward-looking statements that involve a number of risks and
uncertainties, including statements regarding the outlook for the
REIT's business results of operations, proposed use of proceeds
from the Offering (including any redemption) and the timing
thereof. Forward-looking statements use the words "believe",
"expect", "anticipate", "may", "should", "intend", "estimate" and
other similar terms, which do not relate to historical matters.
Such forward-looking statements involve known and unknown risks and
uncertainties and other factors that may cause the actual results
to differ materially from those indicated. Such factors include,
but are not limited to, general economic conditions, the
availability of new competitive supply of commercial real estate
that may become available either through construction or sublease,
the REIT's ability to maintain occupancy and to lease or re-lease
space on a timely basis at current or anticipated rates, tenant
bankruptcies, financial difficulties and defaults, changes in
interest rates, changes in operating costs, the REIT's ability to
obtain adequate insurance coverage at a reasonable cost, the
ability to complete potential acquisitions and the availability of
financing. The REIT believes that the expectations reflected in
forward-looking statements are based on reasonable assumptions;
however, the REIT can give no assurance that actual results will be
consistent with these forward-looking statements. Except as
required by applicable law, the REIT disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.
Readers should be cautioned not to place undue reliance on the
forward-looking statements.
SOURCE Morguard Real Estate Investment Trust