NorthWest HealthcareProperties REIT increasedthe size of a previously announced offering to C$127.8 million from a previouslycontemplated amount of C$100 million.
Under the amended terms, the financing will consist of a publicoffering of approximately C$57.8 million of trust units and C$65 million aggregateprincipal amount of 5.25% convertible unsecured subordinated debentures. The companywill also conduct a concurrent private placement of C$5 million of trust units.
The units and debentures will be offered in Canada and may beoffered via private placement in the U.S.
NorthWest will now issue a combined 5.9 million trust units atC$9.80 apiece and C$65 million aggregate principal amount of 5.25% convertible unsecuredsubordinated debentures at a price of C$1,000 per debenture, which are due July31, 2021. The debentures can be converted at the holder's option into units of thecompany at a conversion price of C$12.75 per unit.
NorthWest has provided a syndicate of underwriters led by RBCCapital Markets, BMO Capital Markets and National Bank Financial with a 30-day optionto purchase up to an additional 885,000 units and C$9.75 million of debentures tocover overallotments, if any.
NorthWest is considering using the net proceeds to fund a portionof its strategic investments in Australia and New Zealand, as well as partiallyfinance planned acquisitions of two hospitals in Brazil.
The offering requires standard regulatory permissions, includingapproval of the Toronto Stock Exchange. Closing is expected to occur on or aboutJuly 25.
Simultaneously, NorthWest Value Partners Inc., NorthWest's largestunit holder, agreed to purchase C$5 million in units at the offering price on aprivate placement basis. NorthWest Value Partners holds an approximate 31% interestin NorthWest and is wholly owned by NorthWest CEO Paul Dalla Lana. The public offering'sclosing is subject to the closure of the concurrent private placement.