/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES./
MISSISSAUGA, ON, Dec. 7, 2021 /CNW/ - Morguard Real Estate Investment Trust ("Morguard REIT" or the "REIT") (TSX: MRT.UN), announced today that it has completed its previously announced public offering (the "Offering"), on a bought deal basis, of $150 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures due December 31, 2026 (the "Debentures"). The Debentures are convertible, at the option of the holder, into trust units of Morguard REIT (the "Units") at $7.80 per Unit. The Offering was underwritten by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities Inc. and Scotiabank, with RBC Capital Markets and TD Securities Inc. acting as bookrunners. As part of the transaction, Morguard Corporation ("Morguard") purchased $60 million aggregate principal amount of the Debentures.
The REIT intends to use the net proceeds from the Offering, together with existing liquidity, to fund the redemption on December 17, 2021 (the "Redemption") of all of the REIT's 4.50% convertible unsecured subordinated debentures (current outstanding principal balance of approximately $175.0 million) (the "2016 Debentures").