Milestone Apartments REIT and MileSouth Apartment Portfolio LP complete $125M offering

Milestone Apartments REIT (the REIT) and MileSouth Apartment Portfolio LP (MileSouth) completed an offering of trust units of the REIT on a bought deal basis. The offering involved the REIT issuing 6,942,981 units from treasury at a price of $13.70 per unit for total gross proceeds of approximately $95 million.

Approximately $60 million of the gross treasury proceeds from the offering were used to repay amounts drawn under the REIT’s credit facility (which were used to partially fund previous acquisitions), for future acquisitions and for general trust purposes.

The remaining treasury proceeds of approximately $35 million were used by the REIT to redeem all of the class B limited partnership units of Milestone Multifamily Investors LP held by MileSouth.

The offering also involved MileSouth selling 2,185,000 units in a secondary offering at a price of $13.70 per unit for total gross proceeds of approximately $30 million.

MileSouth now owns approximately 11.8 million units, which represents an approximate 17.9 per cent ownership interest in the REIT. The offering was conducted through a syndicate of underwriters co-led by BMO Capital Markets and CIBC and including RBC Dominion Securities Inc., National Bank Financial Inc., Scotiabank, TD Securities Inc., GMP Securities L.P., Laurentian Bank Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd. and Raymond James Ltd.

The REIT was represented in Canada by Goodmans LLP with a team that included Stephen Pincus, Brad Ross, Emily Weizel (corporate/securities), and Jon Northup and Ken Saddington (tax); and in the United States by Vinson & Elkins LLP with a team that included Mark Early, Katherine Frank and Ben Chrisman (corporate/securities) and Jim Meyer (tax).

MileSouth Apartment Portfolio LP was represented by Baker & McKenzie LLP with a team that included Greg McNab, Marcus Hinkley and David Palumbo (corporate/securities); and in the United States by Baker & McKenzie LLP with a team that included Addison Braendel and Catherine Rude (corporate/securities).

The underwriters were represented by Davies Ward Phillips & Vineberg LLP in Canada with a team that included Jim Reid and Will Buchner (corporate/securities) and Raj Juneja (tax); and in the United States with a team that included Scott Fisher (corporate/securities) and Abe Leitner (tax).