MISSISSAUGA, ON, Dec. 18, 2019 /CNW/ - Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN) (the "REIT") 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 systems.
The notice provides that the REIT may, during the twelve month period commencing December 21, 2019 and ending December 20, 2020, purchase for cancellation up to 2,953,852 units ("Units") in total, being approximately 10% of the public float of outstanding Units. The daily repurchase restriction for the Units is 17,964. Additionally, the REIT may purchase for cancellation up to $8,050,000 principal amount of the 4.50% Convertible Unsecured Subordinated Debentures due March 31, 2023 (TSX:MRG.DB.A) ("Debentures") being 10% of the public float of outstanding Debentures. The daily repurchase restriction for the Debentures is $11,225.
The price which the REIT 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, 2019, the REIT was approved to purchase up to 2,556,288 Units and $8,050,000 principal amount of Debentures through the facilities of the TSX and/or alternative Canadian trading systems. No Units were purchased for cancellation and no Debentures were purchased for cancellation during the last twelve months. As of December 9, 2019, there were 38,976,755 Units of the REIT outstanding with an average daily trading volume for the prior six months of 71,856. Additionally, as of December 9, 2019 there were $85,500,000 principal amount Debentures of the REIT outstanding with an average daily trading volume for the prior six months of $44,900.
The REIT believes that, from time to time, its Units and Debentures trade in a price range which does not adequately reflect the value of such Units and Debentures in relation to the business of the REIT and its future business prospects. As a result, depending upon future price movements and other factors, the REIT 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 the REIT. All Units and Debentures purchased by the REIT under the normal course issuer bid will be cancelled.
About Morguard North American Residential REIT
The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in Canadian residential apartment communities, located in Alberta and Ontario, and U.S. residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland.
For more information, please visit Morguard.com.
SOURCE Morguard North American Residential Real Estate Investment Trust
For further information: Morguard North American Residential REIT, K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Beverley G. Flynn, Senior Vice President, General Counsel & Secretary, T 905-281-3800