On July 6, 2015, InnVest Real Estate Investment Trust ("InnVest"), holding one of Canada’s largest hotel portfolios comprising over 109 hotel properties, representing over 15,000 guest rooms operated under internationally recognized brands, reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets and BMO Capital Markets (collectively, the “Underwriters”) to sell on a bought deal basis, 8,400,000 units at a price of $5.00 per unit for aggregate gross proceeds of C$42m (the “Offering”) under its outstanding base shelf prospectus.
The Offering closed on July 15, 2015.
On July 22, 2015, the Underwriters exercised in full the over-allotment option in connection with the Offering for an additional 1,260,000 units at a price of $5.00 per unit for additional gross proceeds to InnVest of C$6.3m (the “Over-Allotment Option”).
The aggregate gross proceeds from the Offering, including the Over-Allotment Option, total C$48.3m.
InnVest intends to use the net proceeds from the Offering to fund the acquisition of a 100% interest in Hotel Saskatchewan, to fund the acquisition of a 33% interest in the Courtyard by Marriott in Toronto, Ontario, capital expenditures, debt repayment, potential future acquisitions, and general trust purposes.
Norton Rose Fulbright acted for InnVest on all aspects of the bought deal Offering. The team was led by Andrea Brewer and included Pierre Dagenais, Walied Soliman, Manny Rivera, Barry Segal (tax), Bruce Sheiner and Jenny Yoo.