MRC Bought $50Million of the 2016 MRT 4.5% Debenture The Debentures are convertible, at the option of the holder, into trust units of Morguard REIT at $20.40 per trust unit.
As part of the transaction, Morguard Corporation has agreed to purchase $50,000,000 of the Debentures being offered.
The REIT intends to use the net proceeds from the Offering to fund the redemption of all of the REIT's 4.85% convertible unsecured subordinated debentures (current outstanding balance of $150.0 million) which mature on October 31, 2017 and which have a par call date of November 1, 2016.