- InterRent REIT (TSX:IIP.UN) has entered into an agreement with a syndicate of underwriters to raise roughly C$200 million
- The offering will be led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets
- InterRent will issue approximately 13.7 million trust units at a price of $14.65 each
- The proceeds will be used for a variety of purposes, including debt repayment and future acquisitions
- InterRent REIT (IIP.UN) is currently down 4.4 per cent and is trading at $14.56 per share
InterRent REIT (TSX:IIP.UN) has entered into an agreement with a syndicate of underwriters to raise roughly C$200 million.
Under the agreement, to be led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets as joint bookrunners, the real estate investment trust will issue approximately 13.7 million trust units at a price of $14.65 each.
The underwriters will also be granted an over-allotment option to purchase a further two million units, also at a price of $14.65 each, for additional proceeds of approximately $30 million.
The proceeds raised under the offering will be used to repay existing debt and pursue future acquisition opportunities. A portion will also go towards general working capital purposes.
Following the completion of the offering and before any further acquisitions, InterRent will have a debt to gross book value ratio of roughly 26.8 per cent.
Mike McGahan, CEO of InterRent REIT, said that the company’s portfolio is resilient and continues to perform extremely well.
“The current economic conditions as a result of the pandemic are likely to surface attractive acquisition opportunities that may not have otherwise come available, and following closing of the offering, InterRent will be exceptionally well positioned to capitalise on those opportunities.
“Our management team has an established track record of creating value from periods of significant volatility and market dislocation, having acquired and operated apartments through the early 90’s and again when we joined InterRent during the global financial crisis,” he said.
Subject to approval from the Toronto Stock Exchange, the offer is anticipated to close on around June 4, 2020.
InterRent REIT (IIP.UN) is currently down 4.4 per cent and is trading at $14.56 per share at 2:36pm EDT.
