pcNewsWire – True North Commercial Real Estate Investment Trust (TSX: TNT.UN) has engaged CIBC Capital Markets and Raymond James Ltd. for a bought deal of 4,800,000 trust units at $6.25 per unit for gross proceeds of approximately $30 million.
True North Commercial REIT intends to use the net proceeds of this Offering to fund potential future acquisitions, to repay indebtedness owing under the REIT’s existing credit facilities and for general trust purposes.
News Release
True North Commercial Real Estate Investment Trust Announces $30 Million Equity Offering
/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/
TORONTO, June 28, 2017 – True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the “REIT”) is pleased to announce it has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets and Raymond James Ltd. (collectively, the “Underwriters”) to sell on a bought deal basis 4,800,000 trust units of the REIT at a price of $6.25 per trust unit for gross proceeds to the REIT of approximately $30 million (the “Offering”). The Offering is being made under the REIT’s short form base shelf prospectus dated April 27, 2016. The terms of the Offering will be described in a prospectus supplement to be filed with Canadian securities regulatory authorities.
The REIT has also granted the Underwriters an option (the “Over-Allotment Option”), exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 720,000 trust units of the REIT to cover over-allotments, if any. The Offering is expected to close on or about July 11, 2017 and is subject to certain conditions including, but not limited to, the approval of the Toronto Stock Exchange and other regulatory approvals.
The REIT intends to use the net proceeds of this Offering to fund potential future acquisitions, to repay indebtedness owing under the REIT’s existing credit facilities and for general trust purposes.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 33 commercial properties consisting of approximately 2.2 million square feet in urban cities and select secondary markets across Canada focusing on long term leases with government and credit-rated tenants.
The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist. Additional information concerning the REIT is available at www.sedar.com or the REIT’s website at www.truenorthreit.com.
For further information:
Daniel Drimmer
President and Chief Executive Officer
(416) 234-8444
or
Tracy Sherren
Chief Financial Officer
(416) 234-8444
