MISSISSAUGA, ON, Dec. 16, 2014 /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 and/or alternative Canadian trading platforms.
The notice provides that Morguard may, during the twelve month period commencing December 21, 2014 and ending December 20, 2015, purchase for cancellation up to 2,250,000 units ("Units) in total, being approximately 10% of the public float of outstanding Units. The daily repurchase restriction for the Units is 8,548. Additionally, Morguard may purchase for cancellation up to $5,500,000 principal amount of the 4.65% Convertible Unsecured Subordinated 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 $3,359.
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, 2014, no Units and no Debentures were purchased for cancellation during the last twelve months. As of December 11, 2014 there were 29,307,786 Units of Morguard outstanding with an average daily trading volume for the prior six months of 34,195. Additionally, as of December 11, 2014 there were $60,000,000 principal amount Debentures of Morguard outstanding with an average daily trading volume for the prior six months of $13,436.
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, (905) 281-3800, Beverley G. Flynn, General Counsel & Secretary, (905) 281-3800, Website: www.morguard.com