− Reduces MileSouth Ownership Interest in the REIT to approximately 17.9% down from 26.9% −
TORONTO and DALLAS, May 26, 2015 /CNW/ - Milestone Apartments Real Estate Investment Trust (TSX:MST.UN) ("Milestone" or the "REIT") and MileSouth Apartment Portfolio LP, an affiliated entity of Invesco Ltd. ("MileSouth") announced today that they have completed their previously announced public offering (the "Offering") of trust units of the REIT (the "Units") with a syndicate of underwriters co-led by BMO Capital Markets and CIBC and including RBC Dominion Securities Inc., National Bank Financial Inc., Scotiabank, TD Securities Inc., GMP Securities L.P., Laurentian Bank Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd. and Raymond James Ltd. (collectively, the "Underwriters"), on a bought deal basis. BMO Capital Markets was the sole bookrunner on the transaction.
The Offering involved the REIT issuing 6,942,981 Units from treasury at a price of C$13.70 per Unit for total gross proceeds of approximately C$95 million. Approximately C$60 million of the gross treasury proceeds from the Offering will be used to repay amounts drawn under the REIT's credit facility (which were used to partially fund previous acquisitions), for future acquisitions and for general trust purposes. The remaining treasury proceeds of approximately C$35 million were used by the REIT to redeem all of the class B limited partnership units of Milestone Multifamily Investors LP ("Class B Units") held by MileSouth.
The Offering also involved MileSouth selling 2,185,000 Units at a price of C$13.70 per Unit for total gross proceeds of approximately C$30 million, all of which were paid to MileSouth. As a result, MileSouth now owns approximately 11.8 million Units, representing an approximate 17.9% ownership interest in the REIT, down from approximately 26.9% prior to the Offering.
MileSouth has granted the underwriters an over-allotment option, exercisable at any time up to 30 days following the closing, to purchase up to an additional 1,369,197 Units at a price of C$13.70 per Unit.
The Units were offered in Canada pursuant to the REIT's base shelf prospectus dated May 19, 2015. The terms of the Offering are described in a prospectus supplement filed with Canadian securities regulators. A copy of the prospectus supplement is available under the REIT's profile on the SEDAR website at www.sedar.com.
The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") 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 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.
Milestone is an unincorporated, open-ended real estate investment trust that is governed by the laws of Ontario. The REIT's portfolio consists of 60 multifamily garden-style residential properties, comprising 19,980 units that are located in 13 major metropolitan markets throughout the Southeast and Southwest United States. Milestone is the largest real estate investment trust listed on the TSX focused solely on the United States multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, LLC, which has more than 900 employees across the United States. Based in Dallas, TX, TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.
About The Milestone Group, LLC
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. The firm has corporate offices in Dallas, Texas and New York, New York with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the proposed use of proceeds of the Offering. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. The forward-looking statements in this news release are based on certain assumptions including that the REIT will satisfy all conditions to completion of the Offering. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Milestone Apartments REIT
For further information: Robert Debs, Investor Relations, Milestone Apartments REIT, Tel: 214.561.1215; Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647.496.7856