MISSISSAUGA, ON, Dec. 18, 2013 /CNW/ - Morguard North American
Residential Real Estate Investment Trust (TSX: MRG.UN) ("Morguard")
announced today that the Toronto Stock Exchange has accepted its notice
of intention to make a normal course issuer bid through the facilities
of the TSX.
The notice provides that Morguard may, during the twelve month period
commencing December 21, 2013 and ending December 20, 2014, purchase for
cancellation on the Toronto Stock Exchange up to 2,300,000 units
("Units) in total, being approximately 10% of the public float of
outstanding Units. The daily repurchase restriction for the Units is
10,121. Additionally, Morguard may purchase for cancellation up to
$5,500,000 principal amount of the 4.65% Convertible Unsecured
Debentures due March 30, 2018 (TSX:MRG.DB) ("Debentures") being 10% of
the public float of outstanding Debentures. The daily repurchase
restriction for the Debentures is $8,644.
The price which Morguard will pay for any such Units and Debentures will
be the market price at the time of acquisition. The actual number of
Units and Debentures which may be purchased and the timing of any such
purchases will be subject to compliance with the TSX guidelines.
Under the current normal course issuer bid due to expire December 20,
2013, no Units were purchased for cancellation during the last twelve
months. As of December 12, 2013 there were 29,286,810 Units of
Morguard outstanding with an average daily trading volume for the prior
six months of 40,484. Additionally, as of December 12, 2013 there were
$60,000,000 principal amount Debentures of Morguard outstanding with an
average daily trading volume for the prior six months of $34,579.
Morguard believes that its Units and Debentures have been trading in a
price range which does not adequately reflect the value of such Units
and Debentures in relation to the business of Morguard and its future
business prospects. As a result, depending upon future price movements
and other factors, Morguard believes that its outstanding Units and
Debentures may represent an attractive investment for itself.
Furthermore, the purchases may benefit all persons who continue to hold
Units by increasing their equity interest in Morguard. All Units and
Debentures purchased by Morguard under the normal course issuer bid
will be cancelled.
The REIT is an unincorporated, open-ended real estate investment trust
which owns, through a limited partnership, interests in a portfolio of
14 Canadian residential apartment communities, located in Alberta and
Ontario, and 30 U.S. low-rise and mid-rise, garden-style apartment
communities located in Alabama, Colorado, Florida, Georgia, Louisiana,
North Carolina and Texas consisting of 12,850 residential suites.
SOURCE: Morguard North American Residential Real Estate Investment Trust
For further information:
Morguard North American Residential REIT
K. (Rai) Sahi
Chief Executive Officer
Beverley G. Flynn
General Counsel & Secretary