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NEW GLASGOW, NS, Oct. 19, 2018 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN), announced today that it entered into an agreement to issue $175 million aggregate principal amount of Series E Senior Unsecured Notes maturing January 31, 2025. The Notes will bear interest at a rate of 4.80% per annum and were priced with an effective yield to maturity of 4.802% representing a price of $999.96 per $1,000.00 of principal amount issued.
The Notes are being offered with a syndicate of agents, co-led by Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., and RBC Dominion Securities Inc. and including CIBC World Markets Inc., Desjardins Securities Inc., and TD Securities Inc. to sell, on a best efforts, private placement basis.
Net proceeds from the Notes offering will be used for the repayment of the $175 million 3.986% Series A Notes which are set to mature on October 31, 2018.
The offering is expected to close on or about October 31, 2018 and is subject to customary closing conditions, including receipt of necessary consents and approvals and the Series E Notes receiving a rating of at least BBB(low) with a stable trend from DBRS.
The Series E Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions. The offer and sale of Series E Notes will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the Series E Notes may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Toronto Stock Exchange has neither approved nor disapproved the form or content of this press release.
About Crombie REIT
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 drug store 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 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 amount and timing of the offering which remains subject to the sale by the agents and may be impacted by market conditions. There is no assurance that the offering will be completed.
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 statements. A number of factors, including those discussed in the Management Discussion and Analysis for the year ended December 31, 2017 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.
SOURCE Crombie REIT
Glenn Hynes, FCPA, FCA, Executive Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100