TSX SYMBOL: MRG.UN
/NOT FOR
DISTRIBUTION IN THE UNITED STATES
OR OVER UNITED STATES WIRE
SERVICES/
MISSISSAUGA, ON, March 17,
2023 /CNW/ - Morguard North American Residential Real
Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today
that it has successfully closed the issuance of an additional
$6 million aggregate principal amount
of its 6.00% convertible unsecured subordinated debentures due
March 31, 2028 (the "Debentures")
pursuant to the partial exercise of the over-allotment option
granted by the REIT to the syndicate of underwriters in connection
with the REIT's previously announced offering of $50 million aggregate principal amount of
Debentures, which closed on March 9,
2023. The gross proceeds from the offering (the "Offering"),
including the proceeds from the exercise of the over-allotment
option, are $56 million. The
Debentures are listed on the Toronto Stock Exchange under the
symbol MRG.DB.B.
The REIT intends to use the net proceeds from the Offering,
together with existing liquidity, to fund the redemption on
March 24, 2023 of all of the REIT's
4.50% convertible unsecured subordinated debentures (current
outstanding principal balance of $85.5
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 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