Automotive Properties closes $50-million in financings

Executive Summary

• Automotive Properties REIT has closed a bought deal public offering of 3.07 million units at $11.11 per unit, generating approximately $34 million in gross proceeds.
• Concurrently, the REIT completed a private placement with the Dilawri Group, issuing 1,442,844 units for approximately $16 million in gross proceeds.
• Net proceeds are designated primarily for repaying indebtedness under credit facilities, including debt related to the acquisition of three automotive dealership properties in Dorval, Quebec, with any balance reserved for general trust purposes.

Key Details

• Public Offering Structure: Bought deal public offering of 3.07 million units.
• Offering Price: $11.11 per unit.
• Underwriters: TD Securities Inc. and Scotiabank (bookrunners).
• Public Offering Gross Proceeds: Approximately $34 million.
• Overallotment Option (Public): The underwriters hold an option to purchase up to an additional 460,500 units at the offering price, exercisable within 30 days of closing.
• Concurrent Private Placement: Issuance of 1,442,844 units to a member of the Dilawri Group.
• Private Placement Gross Proceeds: Approximately $16 million.
• Private Placement Option: Dilawri granted an option to purchase up to an additional 216,427 units, exercisable proportionally to the underwriters' overallotment exercise.
• Statutory Hold Period: Units sold in the concurrent private placement are subject to a hold period of four months plus one day from the closing date.
• Use of Proceeds: Repayment of indebtedness under credit facilities, specifically debt incurred for the acquisition of three automotive dealership properties in Dorval, Quebec; remaining funds for general trust purposes.

Notable Quotes

• None provided in the text.