/NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED
TORONTO, Sept. 6 /CNW/ - Scott's Real Estate Investment Trust (TSX:
SRQ.UN) ("Scott's REIT") today announced that it has entered into an agreement
to sell $20 million aggregate principal amount of 7.15% convertible unsecured
subordinated debentures due December 31, 2012 (the "Debentures"). The offering
is being underwritten by a syndicate of underwriters led by TD Securities
Inc., and including BMO Capital Markets, RBC Capital Markets, Desjardins
Securities Inc. and Genuity Capital Markets.
The Debentures will pay interest semi-annually in arrears on December 31
and June 30, with the initial interest payment on December 31, 2007. Scott's
REIT shall have the option to pay such interest either in cash or Trust Units
("Units"), subject to regulatory approval.
The Debentures will be convertible at a conversion price of $10.50 at the
holders' option into fully paid and non-assessable Units at any time prior to
the close of business on the earlier of December 31, 2012 and the business day
immediately preceding the date fixed for redemption. The conversion price of
$10.50 per Unit is equivalent to a ratio of approximately 95.2381 Units per
$1,000 principal amount of Debentures.
The offering is being made to investors in all provinces of Canada, and
is expected to close on or about September 27, 2007. Scott's REIT intends to
make an application to list the Debentures and the Units to be issued upon
conversion thereof on the Toronto Stock Exchange.
The securities offered will not be registered under the U.S. Securities
Act of 1933, as amended (the "Securities Act") and may not be offered or sold
within 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.
About Scott's Real Estate Investment Trust
Scott's REIT is Canada's premier small-box retail property owner with 198
properties in seven provinces across Canada. Scott's REIT's properties are
well-located and geographically diverse across Canada and nearly all
properties are long-term quadruple net leases. The REIT has a 70.6 per cent
interest in Scott's Real Estate LP. To find out more about Scott's Real Estate
Investment Trust (TSX: SRQ-U), visit our website at http://www.scottsreit.com.
This media release contains forward-looking statements. Such statements
are based on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might differ
materially from projections suggested in any forward-looking statements due to
factors such as the competitive nature of the quick service restaurant
industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a
growth and development strategy, the reliance of Scott's REIT and Scott's Real
Estate LP on key personnel, and risk associated with the structure of income
trusts. Scott's REIT and Scott's RE LP assume no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Additional
information identifying risks and uncertainties is contained in Scott's REIT
filings with the Canadian securities regulators, available at www.sedar.com.
For further information:
For further information: For investor information, please contact: Trish
Moran, (416) 624-5133, firstname.lastname@example.org; For media information,
please contact: Wilcox Group, (416) 203-6666, email@example.com