/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, NS, Jan. 26, 2022 /CNW/ - Killam Apartment REIT ("Killam" or the "REIT") (TSX: KMP.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, on a bought deal basis, 4,100,000 trust units (the "Units") for $20.80 per Unit for gross proceeds of $85,280,000 (the "Offering").
Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 615,000 Units, exercisable up to 30 days following the closing of the Offering.
Killam intends to use the net proceeds from the Offering to repay amounts outstanding on its credit facility (current outstanding balance of approximately $60 million), to fund future acquisitions and developments and for general trust purposes.
Upon completion of the Offering and the use of proceeds, Killam expects to have access to approximately $190 million of available capital through its credit facilities and cash on hand.
"During 2021, we acquired approximately $400 million of properties, of which $311 million were outside of Atlantic Canada." stated Philip Fraser, President and CEO. "We are looking forward to exciting growth opportunities in 2022 through continued organic results, and active acquisition and development pipelines."
The Units issued under the Offering will be offered pursuant to the REIT's final short form base shelf prospectus dated January 6, 2022. The terms of the Offering will be described in a prospectus supplement to be filed with securities regulators in each of the provinces of Canada and may also be offered by way of private placement in the United States. Closing of the Offering is expected to take place on or about February 4, 2022, and is subject to customary closing conditions, including the approval of the Toronto Stock Exchange.
This press release is not an offering of securities for sale in the United States. The Units being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and state securities laws. Accordingly, the Units may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act.
About Killam Apartment REIT
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing a $4.4 billion portfolio of apartments and manufactured home communities. Killam's strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.