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Morguard North American Residential REIT Announces Completion of its Previously Announced Public Offering of $75 Million of Convertible Debentures

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/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

MISSISSAUGA, ON, Feb. 13, 2018 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today that it has completed its previously announced public offering (the "Offering") with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities, on a bought deal basis, of $75 million aggregate principal amount of 4.50% convertible unsecured subordinated debentures due March 31, 2023 (the "Debentures"). The Debentures are convertible, at the option of the holder, into trust units of the REIT at $20.20 per trust unit. As part of the transaction, Morguard Corporation purchased $5 million aggregate principal amount of the Debentures at the offering price. Morguard Corporation currently holds an approximate 46.9% effective interest in the REIT through ownership of Units and Class B LP Units.

The REIT intends to use a portion of the net proceeds from the Offering to fund the redemption of all of the REIT's 4.65% convertible unsecured subordinated debentures (current outstanding principal balance of approximately $60 million) which mature on March 30, 2018. The REIT intends to use the remainder of the net proceeds of the Offering to fund future acquisitions, for debt repayment and for general trust purposes.

Copies of the REIT's short form prospectus are available on SEDAR at www.sedar.com.

The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. Persons.

About Morguard North American Residential REIT

The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 16 Canadian residential apartment communities, located in Alberta and Ontario, and 30 U.S. residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia, and Maryland consisting of approximately 13,000 residential suites.

Forward-Looking Information

Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the REIT's business results of operations. Forward-looking statements use the words "believe", "expect", "anticipate", "may", "should", "intend", "estimate" and other similar terms, which do not relate to historical matters. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the REIT operates; changes in business strategy or development/acquisition plans; environmental exposures; financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the REIT; and other factors referred to in the REIT's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The REIT does not assume the obligation to update or revise any forward looking statements.

SOURCE Morguard North American Residential Real Estate Investment Trust

View original content: http://www.newswire.ca/en/releases/archive/February2018/13/c2936.html

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