Agellan Commercial REIT prices $134.6 million initial public offering
/Not for distribution to U.S. Newswire Services or for dissemination in the United States/
TORONTO, Jan. 17, 2013 /CNW/ - Agellan Commercial Real Estate Investment Trust ("Agellan" or the "REIT") announced today that it has filed, and obtained a receipt for, a final prospectus for its initial public offering of 13,461,943 units with the securities commissions of all provinces and territories of Canada. The units will be issued at a price of $10.00 per unit and are expected to provide unitholders with an annual yield of 7.75%. The gross proceeds of the public offering are expected to be approximately $134.6 million.
The offering is being underwritten by a syndicate of underwriters co-led by BMO Capital Markets and CIBC. BMO Capital Markets is the sole bookrunner on the transaction. Agellan and the "Retained Interest Holders", as defined in the final prospectus, have granted the underwriters an over-allotment option, exercisable for a period of 30 days following the closing, to purchase up to an additional 2,019,292 units which, if exercised in full, would increase the total gross proceeds of the offering to the REIT and the Retained Interest Holders to approximately $154.8 million. The offering is expected to close on January 25, 2013.
The Toronto Stock Exchange has conditionally approved the listing of the units under the symbol "ACR.UN".
The REIT intends to make monthly cash distributions to its unitholders at a rate of approximately $0.065 per unit, which are initially expected to provide an annual yield of 7.75%. The first cash distribution, which will be for the period from the date of closing of the offering to February 28, 2013, is expected to be paid on or about March 15, 2013 to unitholders of record on February 28, 2013, in an amount estimated to be approximately $0.079 per unit (assuming the closing occurs on January 25, 2013).
Copies of the final prospectus will be available under the REIT's profile on SEDAR at www.sedar.com.
The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the units in the United States or to, or for the account or benefit of, U.S. Persons.
About Agellan Commercial Real Estate Investment Trust
Agellan Commercial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control and which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, failure to complete the initial public offering of units and related transactions, and the factors discussed under "Risk Factors" in the final prospectus of the REIT dated January 17, 2013. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE: Agellan Commercial Real Estate Investment Trust
Derek Dermott, President
Agellan Commercial Real Estate Investment Trust
Tel: (416) 593-6800 x269
Fax: (416) 593-6700
Frank Camenzuli, CEO
Agellan Commercial Real Estate Investment Trust
Tel: (416) 593-6800 x226
Fax: (416) 593-6700
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