/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
MISSISSAUGA, ON, March 9,
2023 /CNW/ - Morguard North American Residential Real
Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today
that it has completed its previously announced public offering (the
"Offering") with a syndicate of underwriters, co-led by RBC Capital
Markets, TD Securities Inc. and Scotiabank, with RBC Capital
Markets and TD Securities Inc. acting as bookrunners, on a bought
deal basis, of $50 million aggregate
principal amount of 6.00% convertible unsecured subordinated
debentures due March 31, 2028 (the
"Debentures"). The Debentures are convertible, at the option of the
holder, into trust units of the REIT (the "Units") at
$24.15 per Unit. As part of the
transaction, Morguard Corporation purchased $5 million aggregate principal amount of the
Debentures at the offering price. Morguard Corporation currently
holds an approximate 44.7% effective interest in the REIT through
ownership of Units and exchangeable Class B LP Units.
The REIT intends to use the net proceeds from the Offering,
together with existing liquidity, to fund the redemption of all of
the REIT's 4.50% convertible unsecured subordinated debentures (the
"2018 Debentures") (current outstanding principal balance of
$85.5 million) on March 24, 2023 (the "Redemption Date").
The redemption price has been determined in accordance with the
provisions of the trust indenture and the supplemental indenture
related to the 2018 Debentures. The redemption price will be paid
in cash and is $1,000 per 2018
Debenture together with accrued and unpaid interest on the 2018
Debentures up to, but excluding, the Redemption Date.
Copies of the REIT's short form prospectus are available on
SEDAR at www.sedar.com.
The securities offered 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
Canadian residential apartment communities, located in Alberta and Ontario, and U.S. residential apartment
communities located in Colorado,
Texas, Louisiana, Illinois, Georgia, Florida, North
Carolina, Virginia and
Maryland.
For more information, please visit Morguard.com.
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, 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. 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 North American Residential Real Estate
Investment Trust