Northwest Healthcare Properties Real Estate Investment Trust Announces $500 Million Successful Inaugural Unsecured Debentures Offering
February 13, 2025 4:30 PM EST | Source: Northwest Healthcare Properties REIT
Toronto, Ontario--(Newsfile Corp. - February 13, 2025) - Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the "REIT" or "Northwest"), a leading owner and operator of healthcare real estate infrastructure in North America, Brazil, Europe and Australasia, announced today that it has priced a private placement offering of $500 million aggregate principal amount of senior unsecured debentures of the REIT in two series (the "Offering"). The Offering includes (i) $200 million of 5.019% Series A senior unsecured debentures due on February 18, 2028; and (ii) $300 million of 5.514% Series B senior unsecured debentures due on February 18, 2030 (collectively the "Debentures"). The Debentures will be issued at a price of $1,000 per $1,000 principal amount of Debentures. The Debentures are being offered on an agency basis by a syndicate of agents co-led in each of the provinces of Canada by RBC Dominion Securities Inc. and Scotia Capital Inc including National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and TD Securities Inc.
"We are very pleased to announce the successful pricing of our inaugural debentures offering, which follows the recent assignment of an investment-grade credit rating by Morningstar DBRS," said Craig Mitchell, Chief Executive Officer of Northwest. "This transaction strengthens Northwest's financial position by enabling us to significantly reduce our cost of capital and resolve near-term debt maturities, including the repayment of our Series G convertible debentures that mature on March 31, 2025."
The Debentures will be direct senior unsecured obligations of the REIT and will rank equally and rateably with one another and with all other unsecured and unsubordinated indebtedness of the REIT, except to the extent prescribed by law. Northwest will use the net proceeds of the Offering to repay outstanding indebtedness including the 10.0% convertible unsecured subordinated debentures due March 31, 2025. On February 5, 2025, Northwest received an investment grade issuer rating of BBB (low) with a Stable outlook from Morningstar DBRS. The Debentures priced today have been assigned a provisional rating of BBB (low), with a stable trend, by Morningstar DBRS. The closing of the Offering is expected to occur on or about February 18, 2025.
The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Northwest
Northwest provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 171 income-producing properties and approximately 15.8 million square feet of gross leasable area located throughout major markets in North America, Brazil, Europe and Australasia. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. Northwest leverages its global workforce in eight countries to serve as a long-term real estate partner to leading healthcare operators. For additional information please visit: www.nwhreit.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this news release includes statements regarding the strength of our high-quality global healthcare real estate portfolio, diverse tenant base, and operating platform. In addition, statements relating to the closing and benefits of the Offering constitute forward-looking information including the strengthening of Northwest's financial position, the use of proceeds to reduce indebtedness, and the reduction in the REIT's cost of capital. The REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs. These assumptions include, but are not limited to, the closing of the Offering and use of proceeds therefrom to repay indebtedness will occur as planned, and those relating to the REIT's business including interest rates remaining stable or decreasing, the REIT's properties continuing to perform, and currency exchange rates remaining stable. Although the forward-looking statements contained in this news release are based on assumptions that management of the REIT believe are reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT's control, including, among other things, the risks that the Offering and deployment of the proceeds therefore will not occur as planned and the REIT does not realize the benefits noted in this news release, as well as the business and industry risks identified in the REIT's annual information form and MD&A filed under the REIT's SEDAR+ profile at www.sedarplus.ca.The forward-looking statements in this news release relate only to events or information as of the date hereof. Except as required by applicable Canadian securities laws, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated event.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240823
© 2025 Newsfile Corp. All rights reserved.
