/NOT FOR DISTRIBUTION TO THE UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
HALIFAX, NS, Jan. 26, 2022 /CNW/ - Killam Apartment REIT
("Killam" or the "REIT") (TSX: KMP.UN) is pleased to announce that
it has entered into an agreement with a syndicate of underwriters
led by RBC Capital Markets to issue to the public, on a bought deal
basis, 4,100,000 trust units (the "Units") for
$20.80 per Unit for gross proceeds of
$85,280,000 (the "Offering").
Killam has granted the
Underwriters an over-allotment option for the purposes of covering
the Underwriters' over-allocation position for an
additional 615,000 Units, exercisable up to 30 days
following the closing of the Offering.
Killam intends to use the net
proceeds from the Offering to repay amounts outstanding on its
credit facility (current outstanding balance of approximately
$60 million), to fund future
acquisitions and developments and for general trust purposes.
Upon completion of the Offering and the use of proceeds,
Killam expects to have access to
approximately $190 million of
available capital through its credit facilities and cash on
hand.
"During 2021, we acquired approximately $400 million of properties, of which $311 million were outside of Atlantic Canada." stated Philip Fraser, President and CEO. "We are
looking forward to exciting growth opportunities in 2022 through
continued organic results, and active acquisition and development
pipelines."
The Units issued under the Offering will be offered pursuant to
the REIT's final short form base shelf prospectus dated
January 6, 2022. The terms of the
Offering will be described in a prospectus supplement to be filed
with securities regulators in each of the provinces of Canada and may also be offered by way of
private placement in the United
States. Closing of the Offering is expected to take place on
or about February 4, 2022, and is
subject to customary closing conditions, including the approval of
the Toronto Stock Exchange.
This press release is not an offering of securities for sale in
the United States. The Units being
offered have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities
Act"), and state securities laws. Accordingly, the Units may not be
offered or sold in the United
States absent registration or an exemption from the
registration requirements of the U.S. Securities Act.
About Killam Apartment REIT
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords,
owning, operating and developing a $4.4
billion portfolio of apartments and manufactured home
communities. Killam's strategy to
enhance value and profitability focuses on three priorities: 1)
increasing earnings from existing operations, 2) expanding the
portfolio and diversifying geographically through accretive
acquisitions, with an emphasis on newer properties, and 3)
developing high-quality properties in its core markets.
Note: The Toronto Stock Exchange has neither approved nor
disapproved of the information contained herein. Certain statements
in this press release may constitute forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "intend" or the negative of these terms or
other comparable terminology, and by discussions of strategies that
involve risks and uncertainties. Such forward-looking statements
may include, among other things, statements relating to the size,
anticipated closing date and terms of the Offering, the anticipated
use of the net proceeds of the Offering, the filing and contents of
a prospectus supplement, the REIT's anticipated access to capital
and liquidity, and growth opportunities. These forward-looking
statements are based on our expectations, estimates, forecast and
projections, which we believe are reasonable as of the current
date. Such forward-looking statements involve risks, uncertainties
and other factors, which may cause actual results, performance or
achievements of Killam to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements, including the effects of the evolving COVID-19 pandemic
on the performance of the REIT; the effectiveness of measures
intended to mitigate the impact of COVID-19 and any variants
thereof; competition; national and regional economic conditions and
the availability of capital to fund further investments in
Killam's business. For more
detailed information on these and other risks and uncertainties,
you should refer to our most recently filed annual information form
and management's discussion & analysis, each of which is
available at www.sedar.com. Readers should not place undue reliance
on any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is
made. Other than as required by law, Killam does not undertake to update any of
such forward-looking statements.
SOURCE Killam Apartment REIT