InnVest Real Estate Investment Trust Announces Closing of $42 Million Public Equity Offering
Jul 15, 2015, 09:20 ET
TORONTO, July 15, 2015 /CNW/ - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) announced today that it has closed its previously announced public offering of 8,400,000 units, on a bought deal basis, at a price of $5.00 per unit for aggregate gross proceeds of $42,000,000 (the "Offering"). The Offering was conducted through a syndicate of underwriters co-led by RBC Capital Markets and BMO Capital Markets.
Highlighting their support and commitment to the long-term growth of InnVest, funds managed by KingSett Capital ("KingSett") and Orange Capital, LLC, two of InnVest's largest unitholders, participated in the Offering on an aggregate pro rata basis approximately equivalent to their respective ownership interests in InnVest. In addition, certain trustees of InnVest and Westmont Hospitality Group also purchased an aggregate of approximately $2 million in units.
InnVest intends to use the net proceeds of the Offering to fund the previously announced acquisitions of the 100% interest in Hotel Saskatchewan in Regina, Saskatchewan and the 33% interest in the Courtyard by Marriott in Toronto, Ontario with KingSett, capital expenditures, debt repayment and for general trust purposes.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities in any jurisdiction. This news release does not constitute an offer of securities for sale in the United States and the securities referred to in this news release may not be offered or sold in the United States absent a registration or an exemption from registration.
CAUTIONARY AND FORWARD LOOKING STATEMENTS
Statements contained in this press release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations of management and involve risks and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are InnVest's capital requirements and available sources of funds, changes to InnVest's business strategy (including InnVest's ability to divest of assets, its intent to internalize asset management and return expectations on capital investments completed); real estate investment risks, hotel industry risks, competition and the status of InnVest as a REIT for Canadian federal income tax purposes in any year. These and other factors are discussed in InnVest's annual information form for the year ended December 31, 2014, which is available at www.sedar.com In making such forward-looking statements, management has relied upon a number of material factors and assumptions, including with respect to: general economic and financial conditions the use of proceeds of the Public Offering.. Although management of InnVest believes that the expectations with respect to such forward-looking statements are reasonable, such forward-looking statements are subject to known and unknown risks and uncertainties and, accordingly, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list is not exhaustive. The forward-looking statements included herein are made as of the date hereof and InnVest disclaims any intention or obligation to update or revise any forward‑looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.
InnVest Real Estate Investment Trust is an unincorporated open-ended real estate investment trust which owns a portfolio of approximately 109 hotels across Canada representing over 15,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.E, INN.DB.F and INN.DB.G.
SOURCE InnVest Real Estate Investment Trust
For further information: Denise Achonu, VP Finance, Tel: (416) 607-2333, Website: www.innvestreit.com
Share this article