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QUÉBEC CITY, June 4, 2015 /CNW Telbec/ - Cominar Real Estate Investment Trust ("Cominar") (TSX: CUF.UN) has exercised today its right to redeem its Series E 5.75% convertible unsecured subordinated debentures maturing on June 30, 2017 (the "Series E Debentures") in accordance with the terms of the trust indenture dated September 14, 2004 governing the Series E Debentures, as supplemented by a supplemental indenture dated as of the 12th day of January, 2010. The redemption of the Series E Debentures will be effective on July 6, 2015 (the "Redemption Date"). Upon redemption, Cominar will pay to the holders of Series E Debentures a redemption price (the "Redemption Price") equal to the outstanding principal amount of the Series E Debentures to be redeemed, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $1,000.79 per $1,000 principal amount of Series E Debentures, less any taxes required to be withheld or deducted. The aggregate principal amount of Series E Debentures currently outstanding is approximately $86.3 million. Cominar intends to draw funds to pay the Redemption Price from its credit facility.
The Series E Debentures are listed for trading on the Toronto Stock Exchange (the "TSX") under the trading symbol "CUF.DB.E" and may be converted in accordance with their terms into units of Cominar (the "Units") until June 30, 2017. The Series E Debentures are convertible at a conversion price of $25.00 for each Unit, so that approximately 40 Units will be issued for each $1,000 principal amount of Series E Debentures converted.
As it is currently contemplated that all Series E Debentures will be redeemed, Cominar intends to have same be delisted from the TSX at the close of business on the Redemption Date.
Profile as at June 4, 2015
Cominar is the third largest diversified real estate investment trust in Canada and remains the largest commercial property owner in the Province of Québec. Cominar currently owns a real estate portfolio of 566 properties in three different market segments, that is, office properties, retail properties and industrial and mixed-use properties. Cominar's portfolio totals 45.9 million square feet spread out across Québec, Ontario, the Atlantic Provinces and Western Canada. Cominar's objectives are to pay growing cash distributions to unitholders and to maximize unitholder value through proactive management and the expansion of its portfolio.
This press release may contain forward-looking statements with respect to Cominar and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Cominar discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation and the factors described under "Risk Factors" in the Annual Information Form of Cominar. The cautionary statements qualify all forward-looking statements attributable to Cominar and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release.
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST
For further information: Mr. Michel Dallaire, P.Eng., President and Chief Executive Officer, Cominar Real Estate Investment Trust, (418) 681-8151; Mr. Sylvain Cossette, Executive Vice-President and Chief Operating Officer, Cominar Real Estate Investment Trust, (418) 681-6300 ext. 2245; Mr. Gilles Hamel, CPA, CA, Executive Vice President and Chief Financial Officer, Cominar Real Estate Investment Trust, (418) 681-6300 ext. 2315