trending Market Intelligence /marketintelligence/en/news-insights/trending/vI3SLKgSJBM280kUdoz2XQ2 content esgSubNav
In This List

Allied Properties commences C$270M bought-deal unit offering

Blog

Funding Social and Affordable Housing: A Credit Perspective

Blog

Gauging Supply Chain Risk In Volatile Times

Blog

The Future of Risk Management Digitization in Credit Risk Management

Blog

Climate Credit Analytics: Diving into the model


Allied Properties commences C$270M bought-deal unit offering

Allied Properties REIT agreed to issue 6,925,000 units from treasury at C$39.00 apiece for roughly C$270 million in gross proceeds.

The bought-deal offering comes with a 30-day underwriters' option to buy up to 770,000 additional units.

If the overallotment option is fully exercised, Allied expects to have a debt ratio of about 33% at 2017-end and to reduce its funds from operations and adjusted FFO per unit by about 1.5 cents in the third quarter and about 3 cents in the fourth quarter, after giving effect to the offering.

Allied aims to use the offering's net proceeds to fund the balance of its target capital investment of roughly C$500 million in 2017. About C$200 million of the targeted investment was funded by the company's unsecured debenture financing that closed in April.

The capital investment for 2017 includes about C$160 million in acquisitions and the investment in 400 West Georgia in Vancouver, some C$170 million for mortgage repayment, roughly C$80 million for revenue-enhancing capital expenditures on upgrade properties and mission-critical facilities, and around C$90 million for five development properties in Toronto and Kitchener, Ontario.

The investment also includes repaying amounts drawn on the company's unsecured line of credit and for general trust purposes.

Allied expects the offering to close on or about Aug. 17. The syndicate of underwriters is led by Scotiabank and RBC Capital Markets.