Chicago, Aug. 16 – NorthWest Healthcare Properties Real Estate Investment Trust announced a public offering on a bought-deal basis of C$125 million 6.25% convertible subordinated debentures due 2027, according to a press release.
The syndicate of underwriters is being co-led by RBC Capital Markets and Scotiabank.
There is an C$18.75 million 30-day greenshoe to cover over-allotments.
The debentures are convertible at the holder’s option into units of the REIT at a price of C$16.00 per unit.
The debentures will not be redeemable before Aug. 31, 2025.
From Sept. 1, 2025 to Aug. 31, 2026, the debentures can be redeemed at par plus interest at the issuer’s option, subject to a 125% hurdle.
From Sept. 1, 2026 onward, the debentures are redeemable at the issuer’s option at par plus unpaid interest.
Proceeds will be used to repay short-term floating-rate debt with a weighted average interest rate of 7.6% and for general trust purposes.
NorthWest Healthcare is a Toronto-based real estate investment trust that has a portfolio of international health care real estate infrastructure made up of 232 income-producing medical office buildings, clinics and hospitals in Canada, Brazil, Germany, Australia and New Zealand.
| Issuer: | NorthWest Healthcare Properties Real Estate Investment Trust
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| Amount: | C$125 million
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| Greenshoe: | C$18.75 million
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| Issue: | Convertible subordinated debentures
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| Maturity: | Aug. 31, 2027
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| Bookrunners: | RBC Capital Markets and Scotiabank
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| Coupon: | 6.25%
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| Price: | Par
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| Yield: | 6.25%
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| Call features: | Starting Sept. 1, 2025 to Aug. 31, 2026, subject to 125% hurdle; callable at par plus interest subject to 125% hurdle; after Sept. 1, 2026 callable at par
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| Announcement date: | Aug. 16
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| Settlement date: | Aug. 25
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| Distribution: | Canada, private placement in the United States
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