TORONTO, ONTARIO--(Marketwired - Sept. 18, 2013) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) of Toronto, Ontario announced today that it has agreed to sell, subject to regulatory approval, 6,327,000 units for $20.55 per unit for aggregate gross proceeds of $130,019,850 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. CAPREIT has granted the underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part up to 30 days after Closing, to purchase up to an additional 949,050 units to cover over-allotments, if any.
CAPREIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the units. Closing of the Offering is expected to take place on or about October 10, 2013.
CAPREIT intends to use the net proceeds of this offering
- first to repay a portion of the estimated $231 million owing under CAPREIT's credit facilities as of June 30, 2013, after giving effect to subsequent events, which was utilized by CAPREIT to partially fund 13 acquisitions comprising CAPREIT's share of 2,523 suites, completed since November 2012 with aggregate acquisition costs of $474 million; and
- the remainder, if any, for future acquisitions, capital expenditures and for general trust purposes.
Upon closing of the offering, and excluding the effect of the Over-Allotment Option, the repayment of approximately $124 million of the currently drawn acquisition and operating facility, with the net proceeds of this offering, will reduce CAPREIT's total debt to gross book value ratio to 47.3% from 49.6% as at June 30, 2013, after giving effect to subsequent events. CAPREIT expects that in the near-term, proceeds from additional top up mortgage financings will serve to further reduce the amount owing under CAPREIT's credit facilities.
CAPREIT intends to make monthly cash distributions to Unitholders of record on each record date, on or about the 15th day of the month following the record date. CAPREIT's current monthly cash distribution is $0.0958 per unit. The first cash distribution to which purchasers of the units under this Offering will be entitled to participate will be for the month of October, with a record date of October 31, 2013 and a payment date of November 15, 2013.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 38,502 residential units, comprising 35,132 residential suites and 14 manufactured home communities comprising 3,370 land lease sites located in and near major urban centres across Canada and in Dublin, Ireland. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net and our public disclosure, which can be found under our profile at www.sedar.com.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent CAPREIT's intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.