NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) completed an offering in which NorthWest sold an aggregate of 13,133,000 trust units of the REIT at a price of $10.95 per unit, which included 1,713,000 units issued pursuant to the exercise in full of the over-allotment option granted to the underwriters of the offering by NorthWest, on a bought-deal basis.
The units were sold for aggregate gross proceeds of approximately $143.8 million.
The offering was underwritten by a syndicate of underwriters co-led by BMO Capital Markets and RBC Capital Markets and included CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Eight Capital, Canaccord Genuity Corp., Hampton Securities Limited, Industrial Alliance Securities Inc. and Raymond James Ltd.
NorthWest intends to use the net proceeds of the offering, together with existing resources, to repay its secured operating facility in the amount of approximately $125 million, which was utilized by NorthWest to partially fund the acquisition of Generation Healthcare REIT, for future acquisitions, repayment of additional high cost revolving debt and for general trust purposes.
(NorthWest closed, on July 17, 2017, its acquisition of Generation Healthcare REIT, an Australian healthcare real estate portfolio comprising 16 properties, including hospitals, medical centres and laboratories.)
Dorsey & Whitney LLP represented NorthWest in the US. The Dorsey team was composed of Richard Raymer and Sudeep Simkhada (corporate/securities).