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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
This news release constitutes a “designated news release” for the purposes of the REIT’s prospectus supplement dated December 8, 2021, to its short form base shelf prospectus dated December 1, 2021.
LITTLE ROCK, Ark. and TORONTO, April 12, 2022 (GLOBE NEWSWIRE) — BSR Real Estate Investment Trust (“BSR” or the “REIT”) (TSX:HOM) announced today that it has entered into an agreement to sell to a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and CIBC Capital Markets (the “Underwriters”), on a bought deal basis, 5,120,000 trust units of the REIT ( “Units”) at a price of US$19.55 per Unit (“Offering Price”) for gross proceeds to the REIT of approximately US$100 million (the “Public Offering”).
In addition, the REIT has also granted the Underwriters an option (the “Over-Allotment Option”), exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Public Offering to purchase up to an additional 768,000 Units at the Offering Price, which, if exercised in full, would increase the gross proceeds of the Public Offering to approximately US$115 million.
BSR intends to use the net proceeds from the Public Offering to repay outstanding indebtedness, to fund future acquisitions and for general trust purposes. Upon completion of the Public Offering (without giving effect to the Over-Allotment Option), BSR expects to have a debt -to-gross book value of approximately 40.4% including the convertible debentures and 37.8% excluding the convertible debentures and access to approximately US$138.3 million of available liquidity through unrestricted cash and borrowing capacity available under its credit facility.
Daniel Oberste, BSR’s President and Chief Executive Officer commented that “In 2021, we continued to demonstrate our ability …
Full story available on Benzinga.com
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