Blackstone Real Estate Income Trust Leads Syndicate Investment in Tricon
August 27, 2020 | Dawood Fakhir | S&P Global Market Intelligence
Canadian rental housing company Tricon Residential Inc. said it is poised to receive a US$300 million preferred equity investment from a syndicate of investors led by Blackstone Real Estate Income Trust Inc.
The investor group agreed to purchase newly created units issued by a Tricon subsidiary in a private placement. The units will be exchangeable for common shares of Tricon at an initial exchange price of US$8.50 per share, which represents a 16% premium to the 30-day volume-weighted average price of Tricon’s common stock as of August 26. On an as-exchanged basis, the preferred equity will equate to approximately 14% of the pro forma fully diluted outstanding common shares of Tricon at closing.
Blackstone Real Estate Income will buy US$240 million of the preferred equity. Frank Cohen, chairman and CEO of Blackstone Real Estate Income, will join Tricon’s board on the closing date of the investment.
Net proceeds will be used to repay Tricon’s corporate credit facility, which will reduce its proportionate leverage by about 500 basis points to roughly 56% net debt/assets.
The investment is slated to close in late August or early September, pending approval from the Toronto Stock Exchange.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
