Issue 40- Tricon Bites the Bullet


Issue 40- Tricon Bites the Bullet

On June 11, 2019, Tricon Capital Group (TSX: TCN) closed on their US$1.4 billion acquisition of 23 U.S. Sunbelt buildings, containing 7,300 units from the Starlight U.S. Multi-Family Core Fund. For this transaction, the company issued Starlight 50.78 million shares and assumed US$916 million in debt to complete the purchase. A portion of the shares issued were subject to a lock-up. On October 2, 2019, TCN decided to remove the lock-up on 38.6 million common shares, which were issued to non-insiders in connection to the deal. This
equates to 20% of its market cap.

Disclaimer: Palos Funds are shareholders of TCN.

 

By Charles Marleau, CIM & Joany Pagé, CFA

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