Lonsdale Square

Minto Apartment REIT Announces $75 Million Bought Deal Public Offering of Trust Units and Provides an Update on Its Growth Initiatives

Retrieved on: 
Wednesday, October 20, 2021

OTTAWA, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Minto Apartment Real Estate Investment Trust (TSX: MI.UN) (the "REIT") announces that it has entered into an agreement to issue 3,300,000 trust units of the REIT (the “Units”) from treasury on a bought deal basis at a price of $22.85 per Unit (the “Offering Price”) to a syndicate of underwriters bookrun by TD Securities Inc. and BMO Capital Markets (the “Underwriters”) for gross proceeds of approximately $75 million (the “Offering”). In addition, the REIT has granted the Underwriters an option, exercisable in whole or in part at any time up to 30 days following closing of the Offering, to purchase up to an additional 495,000 Units at the Offering Price (the "Over-Allotment Option") which, if exercised in full, would increase the gross proceeds of the Offering to approximately $86 million.

Key Points: 
  • The project is being developed by Minto Properties Inc. ("MPI") and construction is expected to commence in Q1 2022.
  • The REIT has committed to providing up to $51.4 million in financing for this project through a convertible development loan.
  • The REIT has committed to providing up to $14.0 million in financing to this project through a convertible development loan.
  • See the REIT's Management Discussion & Analysis dated August 12, 2021 for further discussion of this and other non-IFRS financial measures.