NorthWestHealthcare Properties REIT plans to sell 6 million trust units in abought-deal public offering.
The company said March 31 that the units subject to the offeringwill be sold at a price to the public of C$9.20 apiece, which equate to roughlyC$55.2 million in gross proceeds. The offering also includes a 30-dayoverallotment option for underwriters to buy a maximum of 900,000 additionalunits.
The REIT expects to wrap up the offering on or about April20, subject to normal regulatory approvals, including that of the Toronto StockExchange.
The company said the units subject to the offering will besold through a short form prospectus in all Canadian provinces and territories.It may also be offered via private placement in the U.S.
In addition, the company's largest unit holder, NorthWestValue Partners Inc., has agreed to buy about C$10 million worth of units on aprivate placement basis. It currently owns a roughly 34% stake in the REIT andis wholly owned by Paul Dalla Lana, the company's CEO.
The closing of the public offering is conditional upon theclosing of the concurrent private placement.
NorthWest Healthcare will use part of the net proceeds tofund the equity component of its purchase of a medical office complexcontaining two buildings in Berlin. The net proceeds may also be used forexisting debt repayment and for general trust purposes, according to a newsrelease.
The company saidMarch 10 that it was completing a C$21.4 million deal in Berlin.
The syndicate of underwriters in the offering is led by RBCCapital Markets and BMO Capital Markets.