Morguard North American Residential Real Estate Investment Trust Announces Public Offering Of $95 Million Of Trust Units And $60 Million Of Convertible Debentures

Morguard North American Residential Real Estate Investment Trust announced that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities, with RBC Capital Markets acting as bookrunner (collectively, the Underwriters), to issue to the public, subject to regulatory approval, on a bought deal basis, 8,270,000 trust units (the Units) at a price of $11.50 per Unit representing gross proceeds of $95,105,000 and $60,000,000 aggregate principal amount of 4.65% convertible unsecured subordinated debentures due March 30, 2018. The Debentures are convertible at the option of the holder, into trust units of the REIT at $15.50 per trust unit. As part of the transaction, Morguard Corporation has agreed to purchase approximately $10 million of the Units being offered, being 870,000 Units, at the offering price and $5 million aggregate principal amount of the Debentures. Morguard Corporation currently holds an approximate 57.0% effective interest in the REIT through ownership of Units and Class B LP Units. After the offering Morguard Corporation will hold an approximate 48.8% effective interest in the REIT through ownership of Units and Class B LP Units. The net proceeds from the Offering will be used to partially fund the acquisition of 3,752 multi-family residential units in the U.S. for gross consideration of USD457.8 million, as previously announced on January 9, 2013, and for general trust purposes.