Northview Apartment REIT
TSX : NVU.UN

Northview Apartment REIT

October 12, 2016 16:31 ET

Northview Apartment Real Estate Investment Trust Announces $65 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwired - Oct. 12, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Northview Apartment Real Estate Investment Trust (the "REIT" or "Northview") (TSX:NVU.UN) today announced that it has agreed to sell on a bought deal basis, subject to regulatory approval, 3,075,000 trust units (the "Trust Units") at a price of $21.15 per Trust Unit for aggregate gross proceeds of approximately $65 million to a syndicate of underwriters (the "Underwriters") led by CIBC Capital Markets and Scotiabank (the "Offering").

The Underwriters have been granted an over-allotment option to purchase up to an additional 461,250 Trust Units at the same offering price, exercisable up to 30 days after the closing of the Offering. The Offering is expected to close on or about October 31, 2016 and is subject to regulatory approval, including the approval of the Toronto Stock Exchange.

Northview intends to use the net proceeds of the Offering for:

  • leverage reduction, including the repayment of credit facilities used to fund recent developments,
  • value creation initiatives,
  • ongoing development and acquisition opportunities; and
  • working capital requirements.

Prior to the effect of any over-allotment option, the Offering reduces debt to gross book value ratio by approximately 200 basis points to approximately 58% excluding convertible debentures.

The first cash distribution to which purchasers of the Trust Units under the Offering will be entitled to receive will be for the month of October, with a record date of October 31, 2016 and a payment date of November 15, 2016. Northview's current monthly cash distribution is $0.1358 per Trust Unit.

The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada.

The securities offered have not been 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 an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Northview

Northview is one of Canada's largest publicly traded multi-family REITs with a portfolio of approximately 24,000 quality residential suites in more than 60 markets across eight provinces and two territories. Northview's portfolio includes markets characterized by expanding populations, growing economies, high occupancy levels, and rising rents, which provides Northview the means to deliver stable and growing profitability and cash distributions over time. The REIT currently trades on the TSX under the ticker symbol: (TSX:NVU.UN). Additional information concerning Northview is available at www.sedar.com or www.northviewreit.com.

Forward-Looking Statements

This news release contains forward-looking statements relating to the Offering, including the terms, potential completion and expected closing date of the Offering, the intended use of proceeds of the Offering and whether the Over-Allotment Option will be exercised. These statements are not guarantees of future events, performance or results and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally, which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to, risks related to: satisfaction of the conditions to closing of the Offering, the receipt of stock exchange approval, the cost of the Offering, the economic climate, dilution, unit price volatility and competition, and other risk factors more particularly described in the most recent Annual Information Form available on SEDAR at www.sedar.com. Additional risks and uncertainties not presently known to Northview or that Northview currently believes to be less significant may also adversely affect Northview.

Readers are cautioned that the above list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. There can be no assurance that the actual results, performance, events or activities anticipated by Northview will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, Northview. Readers, therefore, should not place undue importance on forward-looking information. Further, forward-looking statements speak only as of the date on which such statements are made. Northview disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Contact Information

  • Northview Apartment Real Estate Investment Trust
    Mr. Todd Cook
    President and Chief Executive Officer
    (403) 531-0720

    Northview Apartment Real Estate Investment Trust
    Mr. Travis Beatty
    Chief Financial Officer
    (403) 531-0720

    Northview Apartment Real Estate Investment Trust
    Mr. Leslie Veiner
    Chief Operating Officer
    (403) 531-0720
    www.northviewreit.com