TORONTO, Oct. 12, 2021 /CNW/ - Tricon Residential Inc.
("Tricon" or the "Company") (TSX: TCN) (NYSE: TCN), an owner and
operator of single-family rental homes and multi-family rental
apartments in the United States
and Canada, today announced the
closing of its previously-announced marketed public offering of
common shares of Tricon ("Common Shares") in the United States and Canada (the "Offering"), representing Tricon's
initial public offering in the United
States and listing of the Common Shares on the New York
Stock Exchange, as well as its concurrent private placement of
Common Shares (the "Private Placement") to Blackstone Real Estate
Investment Trust, Inc. ("BREIT").
A total of 46,248,746 Common Shares were sold, including
41,400,000 to the underwriters in the Offering at a price of
US$12.40 per share (the "Offering
Price") (inclusive of 5,400,000 Common Shares following
the exercise in full by the underwriters of their over-allotment
option) and 4,848,746 Common Shares to BREIT in the Private
Placement at a price of approximately US$11.75 per share (the Offering Price net of
underwriting discounts), for aggregate gross proceeds to the
Company of approximately US$570
million.
"Tricon's U.S. IPO is the culmination of a decade-long
transformation from a small asset manager invested in for-sale
housing to a tech-enabled rental housing company focused on the
growing single-family rental industry," said Gary Berman, President and CEO of Tricon.
"A U.S. listing is an important next step to align our middle
market, Sun Belt focused investment strategy with the deep U.S.
public capital markets and to attract more investors to our
business as we usher in a new period of growth."
"As exciting as our future is, we would not have reached this
point without the hard work and dedication of our employees who go
above and beyond every day to serve our residents. We would also
like to take this opportunity to express our gratitude to our Board
of Directors and the many longstanding shareholders, private
investors and capital market partners for their ongoing support
throughout our journey. To our new shareholders, we welcome you to
Tricon and look forward to rewarding your confidence in us with a
people-first, sustainable approach to business that strives to
deliver on our commitments in the years to come."
Morgan Stanley, RBC Capital Markets, Citigroup, Goldman Sachs
& Co. LLC, Scotiabank and Keefe, Bruyette & Woods, a Stifel
company, acted as joint book-running managers in the Offering.
Morgan Stanley and RBC Capital Markets also acted as
representatives of the underwriters in the Offering.
In connection with the Offering, BREIT exercised its
participation right, pursuant to the investor rights agreement with
the Company dated September 3, 2020,
to acquire 4,848,746 Common Shares in the Private Placement.
Following the completion of the Offering and the Private Placement,
BREIT's effective ownership interest in the Company is
approximately 11.66% (assuming the exchange of its preferred units
of Tricon PIPE LLC for Common Shares).
Tricon expects that the net proceeds of the Offering and the
Private Placement will be used to repay the total amount
outstanding under its 2017-1 pass-through certificates in respect
of the Company's single-family rental securitization debt maturing
in 2022, in addition to funding future property acquisitions and
for general corporate purposes.
No securities regulatory authority has either approved or
disapproved the contents of this press release. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the Common Shares in
any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such province, state
or jurisdiction.
About Tricon Residential Inc.
Tricon Residential is an owner and operator of a growing
portfolio of over 33,000 single-family rental homes and
multi-family rental apartments in the
United States and Canada
with a primary focus on the U.S. Sun Belt. Our commitment to
enriching the lives of our residents and local communities
underpins Tricon's culture and business philosophy. We strive to
continuously improve the resident experience through our
technology-enabled operating platform and innovative approach to
rental housing. At Tricon Residential, we imagine a world where
housing unlocks life's potential.
Forward-Looking Information
Certain statements contained in this news release are
forward-looking statements and are provided for the purpose of
presenting information about management's current expectations and
plans relating to the future. Readers are cautioned that such
statements may not be appropriate for other purposes. These
forward-looking statements include statements regarding the
intended use of proceeds of the Offering. In some cases,
forward-looking information can be identified by such terms as
"will", "would", "anticipate", "anticipated", "expect" and
"expected". The forward-looking statements in this news release are
based on certain assumptions, including assumptions regarding the
Company's future growth initiatives and the impact of COVID-19 on
the Company's operations, business and financial results. Such
statements are subject to significant known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
statements and, accordingly, should not be read as guarantees of
future performance or results and will not necessarily be accurate
indications of whether or not such results will be achieved. Such
risks include those risks described in the base shelf prospectus
and the prospectus supplement, available on SEDAR at www.sedar.com,
and the registration statement, available on EDGAR at www.sec.gov,
which risks may be dependent on market factors and not entirely
within the Company's control. Although management believes that it
has a reasonable basis for the expectations reflected in these
forward-looking statements, actual results may differ from those
suggested by the forward-looking statements for various reasons.
These forward-looking statements reflect current expectations of
the Company as at the date of this news release and speak only as
at the date of this news release. The Company does not undertake
any obligation to publicly update or revise any forward-looking
statements except as may be required by applicable law.
SOURCE Tricon Residential Inc.
