Morguard REIT announces completion of previously announced public
offering of $150 million of convertible debentures
/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR OVER UNITED
STATES WIRE SERVICES/
TORONTO,
Oct. 31, 2012 /CNW/ - Morguard Real
Estate Investment Trust ("Morguard REIT" or the "REIT") (TSX:
MRT.UN and MRT.DB.A), announced today that it has completed its
previously announced public offering (the "Offering"), on a bought
deal basis, of $150 million aggregate
principal amount of 4.85% convertible unsecured subordinated
debentures due October 31, 2017 (the
"Debentures"). The Debentures are convertible, at the option of the
holder, into trust units of Morguard REIT at $24.60 per trust unit. The Offering was
underwritten by a syndicate of underwriters co-led by RBC Capital
Markets and TD Securities, with RBC Capital Markets acting as
bookrunner, and including BMO Capital Markets, CIBC, Scotiabank,
HSBC Securities (Canada) Inc. and
National Bank Financial Inc. As part of the transaction, Morguard
Corporation purchased $50 million
aggregate principal amount of the Debentures.
The REIT intends to use the net proceeds of the
Offering to fund a portion of the purchase price of its recently
announced acquisition of Penn West Plaza (207 & 213-9th Avenue
S.W., Calgary, Alberta).
Copies of the REIT's short form prospectus are
available on SEDAR at www.sedar.com.
The securities 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 53 high
quality retail, office and mixed use properties in Canada with an approximate value of
$2.2 billion and comprising
approximately 8.5 million square feet of leaseable 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. 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
(including the Penn West Plaza acquisition) 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