CT Real Estate Investment Trust and a Canadian Tire Corp. Ltd. subsidiary closed an offering of 16,846,000 units of the REIT.
The offering comprised a treasury offering of 6,316,000 units by the REIT and a secondary offering of 10,530,000 units by Canadian Tire for respective gross proceeds of C$90 million and C$150 million, and came with a 30-day overallotment for the underwriters to acquire up to 2,457,000 additional units.
Canadian Tire will use the net proceeds from the secondary offering to support its ongoing investment in its business and for general corporate purposes. The REIT will use the net proceeds from the treasury offering to pay down amounts owing on its credit facility, to fund its investment program and for general working capital and corporate purposes.
The syndicate of underwriters for the offering was led by CIBC Capital Markets, RBC Capital Markets and BMO Capital Markets.
