/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
STELLARTON, NS, July 3, 2012 /CNW/ – Crombie Real Estate Investment
Trust ("Crombie") (TSX: CRR.UN) announced today that it has closed the
previously announced offering, on a bought-deal basis, of $36 million
of convertible unsecured subordinated debentures (the "Debentures").
In addition, Empire Company Limited ("Empire") has purchased $24
million of Debentures on the same terms, in satisfaction of
wholly-owned ECL Developments Limited's pre-emptive right with respect
to the Debenture offering.
The Debentures have a maturity date of September 30, 2019. The
Debentures have a coupon of 5.00% per annum and will pay interest
semi-annually in arrears on March 31 and September 30 in each year
commencing on September 30, 2012. Each $1,000 principal amount of
Debentures is convertible into approximately 49.7512 units of Crombie,
at any time, at the option of the holder, representing a conversion
price of $20.10 per unit.
Crombie will use the net proceeds from this offering to repay debt and
for general trust purposes.
The underwriting syndicate was co-led by CIBC and Scotiabank and also
includes TD Securities Inc., BMO Nesbitt Burns Inc., National Bank
Financial Inc., Canaccord Genuity Corp., Macquarie Capital Markets
Canada Ltd., Raymond James Ltd., Brookfield Financial Corp. and
Desjardins Securities Inc.
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. The trust invests in income-producing
retail, office and mixed-use properties in Canada, with a future growth
strategy focused primarily on the acquisition of retail properties.
Crombie REIT currently owns a portfolio of 166 commercial properties in
nine provinces, comprising approximately 13.6 million square feet of
gross leasable area. More information about Crombie REIT can be found
This news release may contain 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. These
statements reflect current beliefs and are based on information
currently available to management of Crombie, and include, without
limitation, statements regarding the expected use of proceeds of the
Offering. Forward looking statements necessarily involve known and
unknown risks and uncertainties.
A number of factors, including those discussed in the 2011 annual
Management Discussion and Analysis under "Risk Management", 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.
Readers are cautioned that such forward-looking statements are subject
to certain risks and uncertainties that could cause actual results to
differ materially from these statements. Crombie can give no assurance
that actual results will be consistent with these forward-looking