RE:NWH/UN --- HALTED!sandysouci wrote: ... what's up? anyone???
NorthWest Healthcare Properties Real Estate Investment Trust Announces $150 Million Bought Deal of Trust Units
TORONTO, July 23, 2019 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust ("NorthWest" or the "REIT") (TSX: NWH.UN) announced today a public offering, on a "bought deal" basis, of 12,720,000 trust units (the "Units") at a price of $11.80 per Unit representing gross proceeds of approximately $150,096,000 million (the "Offering"). The Offering is being made through a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets.
The REIT has also granted the underwriters the option to purchase up to an additional 1,908,000 Units to cover over-allotments, if any, exercisable in whole or in part anytime up to 30 days following closing of the Offering.
The REIT intends to use the net proceeds of the Offering to repay approximately $120 million of high-cost corporate debt (including the REIT's 7.25% convertible unsecured subordinated debentures maturing October 31, 2019 with an outstanding balance of $38.75 million) with a weighted average interest rate and term to maturity of 7.7% and 1.0 years, respectively.
The remainder of the net proceeds will be used to complete the previously announced acquisitions of a German medical office building and a rehabilitation hospital for a combined purchase price of approximately $61.5 million (€41.0 million) at a weighted average stabilized capitalization rate of 5.8%. The acquisitions will be funded with new property mortgages totaling $37.8 million (€25.2 million) at a weighted average interest rate of 1.8%, proceeds from the Offering and the REIT's existing resources, noting that the acquisition of the medical office building closed on July 5, 2019 and the acquisition of the rehabilitation hospital is expected to close in August 2019, subject to customary closing conditions.
Newswire link: Bought Deal