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NorthWest Healthcare Properties REIT (TSX:NWH.UN) announces $200M equity financing
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  • NorthWest Healthcare Properties REIT (NWH.UN) has announced a public offering on a bought deal basis
  • The offering consists of 15,820,000 trust units at a price of C$12.65 per unit
  • Expected gross proceeds of approximately C$200,123,000
  • Underwriters include Scotiabank, RBC Capital Markets, and BMO Capital Markets
  • The underwriters have the option to purchase up to an additional 2,373,000 units anytime up to 30 days following the closing of the public offering
  • The REIT has also entered into a private placement agreement to sell 395,257 to 1,976,285 trust units to NorthWest Value Partners Inc
  • The public offering is expected to close on or about February 26, 2021. The private placement is expected to close shortly thereafter
  • The REIT intends to use the net proceeds from the offering to repay $196 million of corporate debt
  • NorthWest Healthcare Properties REIT (NWH.UN) opened trading at C$13.07 per share

NorthWest Healthcare Properties REIT (NWH.UN) has announced a public offering on a bought deal basis.

The offering consists of 15,820,000 trust units at a price of $12.65 per unit representing gross proceeds of approximately $200,123,000.

The public offering is being made through a syndicate of underwriters co-led by Scotiabank, RBC Capital Markets, and BMO Capital Markets.

The REIT has also granted the underwriters the option to purchase up to an additional 2,373,000 units to cover over-allotments, if any, exercisable in whole or in part anytime up to 30 days following the closing of the public offering.

Concurrently with the Public Offering, the REIT has also entered into an agreement to sell 395,257 to 1,976,285 trust units to NorthWest Value Partners Inc. (“NWVP”), NorthWest's largest unitholder, on a non-brokered private placement basis for gross proceeds of approximately $5 million to $25 million

The REIT intends to use the net proceeds from the offering to repay $196 million of corporate debt with a weighted average interest rate of approximately 6.1%, and the remainder, if any, to fund future acquisitions, to repay additional revolving debt and for general trust purposes.

The public offering is expected to close on or about February 26, 2021. The private placement is expected to close shortly after the closing of the public offering.

NorthWest Healthcare Properties REIT is an unincorporated, open-ended real estate investment trust that provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 190 income-producing properties and over 15.4 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand.

The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies.

NorthWest Healthcare Properties REIT (NWH.UN) opened trading at C$13.07 per share.

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