NorthWest International Healthcare Properties REIT Announces Closing of $18,000,000 Offering of Trust Units and Confirms Intention to Increase Distribution
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Dec. 18, 2013 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today the closing of its previously announced offering of 9 million trust units of the REIT (the "Units") at a price of $2.00 per Unit for gross proceeds of $18,000,000 (the "Offering"). The Offering was conducted by a syndicate of underwriters co-led by GMP Securities L.P. and National Bank Financial Inc., acting as joint bookrunners, and including Canaccord Genuity Corp., Dundee Securities Ltd., Scotiabank, Desjardins Securities Inc. and Manulife Securities Incorporated (collectively, the "Underwriters").
The REIT has granted the Underwriters an over-allotment option exercisable at any time up to the date that is 30 days from the date of closing of the Offering to offer for sale up to an additional 1,350,000 Units at a price of $2.00 per Unit for additional gross proceeds of up to $2,700,000 on the same terms and conditions as the Offering.
The net proceeds from the Offering are expected to be used to fund future acquisitions (including a portion of the purchase price for the Rede D'Or Hospital Portfolio Acquisition, as defined and detailed in the REIT's press release dated September 30, 2013), for repayment of debt and for general trust and working capital purposes. The Rede D'Or Hospital Portfolio Acquisition is expected to close on or about December 20, 2013.
As previously disclosed, the REIT has announced that it will increase the amount of the monthly distribution payable to unitholders following completion of the Offering and the Rede D'Or Hospital Portfolio Acquisition from $0.0133 per unit ($0.16 per unit annualized) to $0.0183 per unit ($0.22 per unit annualized). The increased distribution will take effect on the first day of the month following completion of the Offering and the Rede D'Or Hospital Portfolio Acquisition. For clarity, the proposed increase in the REIT's monthly distribution will not be effected if the Rede D'Or Hospital Portfolio Acquisition is not completed.
About NorthWest International Healthcare Properties Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on international healthcare properties, on a tax efficient basis; (ii) enhance the value of the REIT's assets and maximize long-term unit value; and (iii) expand the asset base of the REIT.
Forward Looking Information
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Offering, the proposed Rede D'Or Hospital Portfolio Acquisition and the proposed increase in the monthly distribution. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including risks that the Rede D'Or Hospital Portfolio Acquisition will not be completed on the terms proposed, or at all. The statements in this news release are made as of the date of this release. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. A discussion of the risk factors applicable to the REIT is contained under the heading "Risk Factors" in the short-form prospectus of the REIT dated December 12, 2013, the REIT's annual information form dated March 11, 2013 and audited consolidated financial statements and management's discussion and analysis for the year ended December 31, 2012, a copy of which may be obtained on the SEDAR website at www.sedar.com."
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. Accordingly, this news release does not constitute an offer for sale of securities in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: NorthWest International Healthcare Properties REIT
Paul Dalla Lana
CEO
(416) 366-8300 ext. 1001
Teresa Neto
CFO
(416) 366-8300 ext. 1002
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