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NEW GLASGOW, NS, Feb. 11, 2020 /CNW/ - Crombie Real Estate Investment Trust ("Crombie" or the "REIT") (TSX: CRR.UN) announced today that it has closed its previously announced offering, on a bought deal basis, of $58.5 million of trust units (the "Units") at a price of $16.00 per Unit to a syndicate of underwriters co-led by CIBC World Markets and BMO Capital Markets.
In addition, ECL Developments Limited ("ECL"), a wholly-owned subsidiary of Empire Company Limited, has purchased, on a private placement basis, $41.5 million of Class B LP Units of Crombie Limited Partnership ("Class B LP Unit"), together with the attached Special Voting Units of Crombie, at a price of $16.00 per Class B LP Unit. Each Class B LP Unit is exchangeable for one Unit of Crombie at the option of the holder. Upon exchange of a Class B LP Unit, the associated Special Voting Unit is cancelled. After the closing of the public offering and the private placement, Empire Company Limited continues to hold a 41.5% economic and voting interest in Crombie.
The REIT intends to use the net proceeds from both the offering and the concurrent purchase by ECL to reduce outstanding borrowings under the REIT's revolving and bilateral credit facilities and for general trust purposes, which may include funding its development pipeline.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Crombie Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie is one of the country's leading national retail property landlords with a strategy to own, operate and develop a portfolio of high quality grocery- and drugstore-anchored shopping centres, freestanding stores and mixed-use developments primarily in Canada's top urban and suburban markets. More information about Crombie can be found at www.crombiereit.ca.
This news release contains forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements, and include statements regarding the expected use of proceeds of the offering and the ECL private placement. These statements reflect current beliefs and are based on information currently available to management of Crombie. Forward looking statements necessarily involve known and unknown risks and uncertainties.
A number of factors, including those risks discussed under "Risks" in Crombie's Annual Information Form for the year ended December 31, 2018, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
SOURCE Crombie REIT
Clinton Keay, CPA, CA, Chief Financial Officer and Secretary, 902-755-8100