New stock arbitrage— Canadian Apartment Properties REIT

 

Canadian Apartment Properties Real Estate Investment Trust is a growth-oriented investment trust managing 63,907 suites and sites across Canada, the Netherlands, and Ireland. It owns interests, directly in Canada, and indirectly in the Netherlands through its investment in ERES, a total of 60,241 residential units, comprising 48,566 residential suites and 72 manufactured home communities comprising 11,675 sites, all located in and near major urban centres.

 

Canadian Apartment Properties REIT announced that it has agreed to sell, subject to regulatory approval 7,930,000 units at a price of $53.60 per unit for aggregate gross proceeds of $425 million to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. CAPREIT has granted the underwriters an over-allotment option, exercisable in whole or in part up to 30 days after closing of the Offering, to purchase up to an additional 1,189,500 units to cover over-allotments, if any. If the Over-Allotment is exercised in full, the gross proceeds would increase to approximately $489 million. Closing of the Offering is expected to occur on or about December 6, 2019.