TORONTO, Sept. 20, 2011 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ.UN) ("Scott's REIT") today announced that it has closed its
previously announced offering of $12 million convertible unsecured
subordinated debentures due December 31, 2016 (the "Debentures").
The Debentures were offered through a syndicate of underwriters led by
National Bank Financial Inc. and including Canaccord Genuity Corp., GMP
Securities LP. and HSBC Securities (Canada) Inc.
The Debentures will pay interest at a rate of 8.00 per cent per annum
calculated semi-annually in arrears on December 31 and June 30, with
the initial interest payment on December 31, 2011.
The Debentures are convertible into fully paid and non-assessable units
of Scott's REIT at a conversion price of $9.00 per unit, subject to
adjustment upon the occurrence of certain events, at the holders'
option at any time prior to the close of business on the earlier of
December 31, 2016 and the business day immediately preceding the date
fixed for redemption. The conversion price is equivalent to a ratio of
approximately 111.1111 units per $1,000 principal amount of Debentures.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX:SRQ.UN) is Canada's premier small-box retail property
owner with 220 properties in seven provinces across Canada. Scott's
REIT's properties are well located and geographically diverse across
Canada with the majority of all properties containing long-term
quadruple net leases. The REIT has an approximately 75.6 per cent
interest in Scott's Real Estate LP. To find out more about Scott's Real
Estate Investment Trust (TSX:SRQ.UN), visit our website at http://www.scottsreit.com.
This document contains certain information that may constitute
forward-looking information within the meaning of securities laws. In
some cases, forward-looking information can be identified by the use of
terms such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or
other similar expressions concerning matters that are not historical
facts. Forward-looking information may relate to management's future
outlook and anticipated events or results, and may include statements
or information regarding future growth opportunities and potential and
expected cash distributions or cash distribution levels. In particular,
information regarding the REIT's monthly cash distributions and
information relating to the impact of the REIT's recent acquisitions on
annual revenues and interest expense is forward-looking information.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, occupancy rates, property expense and
capital expenditures. While the REIT considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. Forward looking-information is subject to
certain factors, including risks and uncertainties, which could cause
actual results to differ materially from what is currently expected.
Such factors include risks relating to the REIT's reliance on Priszm
LP, the REIT's largest tenant, risks associated with investment in real
property, competition, reliance on key personnel, financing and
refinancing risks, environmental matters, tenant risks, risks related
to current economic conditions and other risk factors more particularly
described in the REIT's Annual Information Form for the year ended
December 31, 2010. You should not place undue importance on
forward-looking information and should not rely upon this information
as of any other date. Other than as required by applicable Canadian
securities law, the REIT does not undertake to update this information
at any particular time. Additional information identifying risks and
uncertainties is contained in Scott's REIT filings with the Canadian
securities regulators, available at www.sedar.com.
SOURCE Scott's Real Estate Investment Trust
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