SmartCentres REIT signed an agreement to sell 6.4 million variable voting units on a bought deal basis at C$31.25 apiece for gross proceeds of about C$200 million.
The units will be sold to a syndicate of underwriters co-led by CIBC Capital Markets, BMO Capital Markets, RBC Capital Markets, Scotiabank and TD Securities, with CIBC Capital Markets acting as sole book runner.
The shopping center real estate investment trust granted the underwriting syndicate a 30-day overallotment option to acquire up to another 960,000 units at the offer price, which, if exercised in full, would boost the gross size of the offering to approximately C$230 million.
Net proceeds generated will be used to partially repay amounts drawn under SmartCentres' credit facilities, which will then be available to be redrawn by the REIT to partly finance its development programs in connection with the Vaughan Metropolitan Centre in Ontario, seniors housing, self-storage, multifamily residential, retail and other initiatives.
Any remaining proceeds will be used for future acquisitions, developments, capital expenditures and for general trust purposes. The offering is set to close on or about Jan. 23.