NorthWest Healthcare Properties REIT Announces Intention to Redeem Two Series of Convertible Debentures Totalling $93 Million, Including One Series of In-the-Money Debentures
19 Dec, 2019, 14:52 ET
TORONTO, Dec. 19, 2019 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT") (TSX: NWH.UN) is pleased to announce that it intends to redeem all of its outstanding:
- 5.25% convertible unsecured subordinated debentures (the "5.25% Debentures"), of which $40,250,000 aggregate principal amount is currently outstanding; and
- 5.50% convertible unsecured subordinated debentures (the "5.50% Debentures", and together with the 5.25% Debentures, the "Debentures"), of which $52,742,000 aggregate principal amount is currently outstanding.
The redemptions are expected to occur on January 20, 2020 (the "Redemption Date").
The 5.25% Debentures mature on September 30, 2020 and are listed for trading on the Toronto Stock Exchange (the "TSX") under the trading symbol "NWH.DB". The 5.50% Debentures mature on October 31, 2020 and are listed for trading on the TSX under the trading symbol "NWH.DB.D".
The 5.50% Debentures have a conversion price of $11.25 per trust unit, which is less than the current trading price of the REIT's trust units. Holders of 5.50% Debentures that wish to convert their debentures must do so in accordance with the Trust Indenture and the Supplemental Indenture related to the 5.50% Debentures. Registered holders of Debentures that wish to convert must provide written notice of conversion prior to January 17, 2020, being the last business day immediately preceding the Redemption Date. Beneficial holders of Debentures that wish to convert should contact their respective brokerage firm or financial institution well in advance of this deadline.
The redemption price has been determined in accordance with the provisions of the Trust Indenture and the Supplemental Indentures related to the Debentures. The redemption price will be paid in cash and will be equal to the aggregate principal amount of the Debentures, together with accrued and unpaid interest on the Debentures up to, but excluding, the Redemption Date.
Notices of redemption are being delivered today, December 19, 2019, to CDS & Co. ("CDS") and the Debenture trustee, Computershare Trust Company of Canada.
Non-registered holders (banks, brokerage firms or other financial institutions) who maintain their interests in the Debentures through CDS should contact their CDS customer service representative with any questions about the redemption or conversion. Alternatively, beneficial holders with any questions about the redemption or conversion should contact their respective brokerage firm or financial institution, which holds interests in the Debentures through CDS on their behalf.
About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 174 income-producing properties and over 14 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 180 professionals across nine offices in five countries to serve as a long term real estate partner to leading healthcare operators.
Forward Looking Information
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws, including but not limited to the expected timing of the redemption of the Debentures. When used in this news release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward looking statements. Those statements reflect the REIT's current views with respect to future events or conditions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forth herein. Forward looking statements are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the REIT's annual information form dated March 15, 2019 and the REIT's other public filings, copies of which each may be obtained on the SEDAR website at www.sedar.com. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The REIT does not intend to nor assume any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
For further information: Paul Dalla Lana, CEO, NorthWest Healthcare Properties REIT, (416) 366-8300 x1001
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