NorthWest Healthcare Properties REIT raised approximately C$253.2 million from a bought-deal offering of 20,750,000 trust units at C$12.20 apiece.
The company said the public offering includes the underwriters' overallotment option to acquire up to 2,767,500 units.
Combined with a C$25.0 million private placement to Northwest Value Partners Inc., expected to close in January 2020, the company said it expects gross proceeds of the offering to amount to roughly C$278.1 million.
The real estate investment trust aims to use the net proceeds to repay about C$242 million of corporate debt, among other uses.
Separately, the company said it plans to fully redeem all of its outstanding 5.25% convertible unsecured subordinated debentures due Sept. 30, 2020, and 5.50% convertible unsecured subordinated debentures due Oct. 31, 2020.
The 5.25% debentures have an outstanding amount of roughly C$40.3 million, while the 5.50% debentures have an outstanding amount of about C$52.7 million. The company expects to redeem the debentures Jan. 20, 2020.
BMO Capital Markets, RBC Capital Markets and Scotiabank co-led the syndicate of underwriters for the public offering.
Computershare Trust Co. of Canada is the debenture trustee.