STELLARTON, NS, Jan. 15, 2015 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it has exercised its right to redeem its 5.75% Series C Convertible Unsecured Subordinated Debentures maturing on June 30, 2017 (the "Debentures") in accordance with the terms of the trust indenture dated February 8, 2010, governing the Debentures. The redemption of the Debentures will be effective on February 18, 2015 (the "Redemption Date"). Upon redemption, Crombie will pay to the holders of Debentures the redemption price (the "Redemption Price") equal to the outstanding principal amount of the Debentures to be redeemed, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $1,007.56 per $1,000 principal amount of Debentures, less any taxes required to be deducted or withheld.
The aggregate principal amount of Debentures currently outstanding is $45,000,000. Crombie intends to draw funds from its existing revolving line of credit to pay the Redemption Price of the redeemed Debentures. The Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "CRR.DB.C" and may be converted in accordance with their terms into Units of Crombie until February 17, 2015.
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 currently owns a portfolio of 255 commercial properties across Canada, comprising approximately 17.4 million square feet with a strategy to own and operate a portfolio of primarily high quality grocery and drug store anchored shopping centres and freestanding stores in Canada's top 36 markets.
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. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2013 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.
SOURCE Crombie REIT