Tricon Residential Launches US$395 Million NYSE IPO, Private Placement

Tricon Residential (TSX: TCN) announced today its dual market public offering in the United States and Canada, which also represents the company’s initial public offering on an American exchange. Concurrent to the offering is also a private placement of common shares to Blackstone Real Estate Investment Trust.

The company reported a total of US$395 million worth of company shares will be proffered in both the public offering and the private placement. The share price and count are expected to be determined at the time of entering into an underwriting agreement.

In connection with its US IPO, the rental company has filed to list its shares on the New York Stock Exchange under the symbol “TCN”. Trading on the American big board is expected to start after the pricing of the offering.

Morgan Stanley, RBC Capital Markets, Citigroup, and Goldman Sachs & Co. are acting as joint book-running managers in the offering. The underwriters will be granted an over-allotment option to purchase up to US$52.5 million of common shares.

Blackstone Real Estate is also exercising its participation right to acquire approximately US$45 million in the private placement. Following the effect of both the offering and the private placement, the investment firm will effectively own approximately 11.87% of the company.

The company expects to use the proceeds of both the offering and the private placement on repaying a portion of its single-family rental securitization debt maturing in 2022, funding future property acquisitions, and for general corporate purposes.

Tricon Residential last traded at $16.74 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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