NorthWest International Healthcare Properties REIT Files Final Short Form Prospectus in Connection with $18,000,000 Equity Offering
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TORONTO, Dec. 13, 2013 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today that it has filed and received a receipt for a final short form prospectus in each of the provinces and territories in Canada with respect to an offering of 9,000,000 units of the REIT at a price of $2.00 per unit for aggregate gross proceeds of $18,000,000 (the "Offering"). The Offering is being conducted pursuant to the terms of an underwriting agreement dated December 12, 2013 between the REIT and a syndicate of underwriters co-led by GMP Securities L.P. and National Bank Financial Inc. and including Canaccord Genuity Corp., Dundee Securities Ltd., Scotia Capital Inc., Desjardins Securities Inc. and Manulife Securities Incorporated (collectively, the "Underwriters"). Additionally, the REIT has granted to the Underwriters an option to purchase up to that number of additional units equal to 15% of the number of units sold at the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes.
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.
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 Acquisition. For clarity, the proposed increase in the REIT's monthly distribution will not be effected if the Offering is not completed.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
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 distribution increase. 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 and the Offering 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.
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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