Provides Update on Quarterly Financing and Investing Activities
TORONTO, Sept. 24, 2012 /CNW/ - First Capital Realty Inc. ("First
Capital Realty" or the "Company") (TSX: FCR), Canada's leading owner,
developer and operator of supermarket and drugstore anchored
neighbourhood and community shopping centres, located predominantly in
growing urban markets, announced today an update regarding the
September 30, 2012 redemption of its 6.25% convertible unsecured
subordinated debentures due December 31, 2016 (TSX: FCR.DB.C) (the
As previously announced, the 6.25% Debentures will be redeemed at par,
plus accrued but unpaid interest from March 31, 2012 to but excluding
the September 30, 2012 redemption date. The full redemption price and
interest owing will be satisfied on October 1, 2012 (as September 30 is
not a business day) by the issuance of common shares. The
volume-weighted-average trading price (or VWAP) of the Company's common
shares for the 20 trading days ended September 24, 2012 is $19.037.
The number of common shares to be issued will be calculated by dividing
the dollar amount of principal redeemed and interest payable by an
amount equal to 97% of this volume-weighted-average trading price.
Alternatively, holders of 6.25% Debentures remain entitled to convert
the principal amount outstanding of their 6.25% Debentures at a
conversion price of $14.313 per common share until 5:00 p.m. (Toronto
time) on September 28, 2012 (the "Conversion Deadline"). Therefore, holders who take action and exercise their conversion
privilege before the Conversion Deadline will receive approximately 29%
more common shares of the Company (assuming no fractional shares) in
respect of the outstanding principal amount of their 6.25% Debentures
than holders who take no action and, as a result, permit their 6.25%
Debentures to be automatically redeemed in accordance with their terms.
If you hold your 6.25% Debentures through a broker, you should contact
your broker immediately as First Capital Realty understands the process
for exercising your conversion privilege is subject to the rules and
procedures of your broker and, in turn, CDS Clearing and Depository
Services Inc. You should be aware that the process, applicable timing
and deadlines may vary from broker to broker.
As of the date hereof, the principal amount of 6.25% Debentures
outstanding is approximately $28.2 million.
Consistent with First Capital Realty's practice in respect of all its
outstanding convertible debentures, it remains the Company's current
intention to continue to satisfy its obligations to pay principal and
interest on its convertible unsecured subordinated debentures through
the issuance of common shares.
Update on Financing and Investing Activities in the Quarter
First Capital Realty also provided an update on financing and investing
activities during the quarter. Total equity raised in the quarter
amounts to approximately $467 million. This equity issued includes the
common shares and warrants issued pursuant to the unit offerings
completed in August and September, the common shares issued as
consideration for the acquisition of the medical office and retail
properties of Gazit America Inc., the common shares to be issued in
respect of the interest on all series of the Company's convertible
debentures, and the estimated number of common shares to be issued
assuming conversion of the Company's 6.25% convertible debentures.
Since June 30, 2012, the Company has invested approximately $307 million
in investment properties and $70 million in development and
redevelopment activities, completed the disposition of three properties
for gross proceeds of approximately $93 million and assumed $113
million of mortgage financing comprising a total net investment of $171
million. Proforma these activities, the Company's debt to total assets
ratio is approximately 41.6% and its debt to market capitalization
ratio is approximately 40.1% as compared to 44.3% and 43.9%,
respectively, at June 30, 2012 as reported in the Company's Second
"This quarter we took significant and decisive steps to strengthen our
financial position, which is in line with our stated objective to
become a better credit rated Company," said Karen H. Weaver, Executive
Vice President and Chief Financial Officer. "Our ongoing investments
in development and redevelopment activities, along with our capital
recycling program, continue to reinforce our position as being one of
the best shopping centre franchises in North America."
ABOUT FIRST CAPITAL REALTY (TSX: FCR)
First Capital Realty is Canada's leading owner, developer and operator
of supermarket and drugstore anchored neighbourhood and community
shopping centres, located predominantly in growing urban markets. First
Capital Realty currently owns interests in 172 properties, including
six under ground-up development, totalling approximately 24.1 million
square feet of gross leasable area and four sites in the planning stage
for future retail development.
This press release contains forward-looking statements and information
within the meaning of applicable securities law. Forward-looking
statements can be identified by the expressions "expects", "believes",
"estimates", "will" and similar expressions. Statements pertaining to
the effect of financing and investing activities on First Capital
Realty's financial position and ratios also constitute forward-looking
statements. The forward-looking statements are not historical facts but
reflect First Capital Realty's current expectations regarding future
results or events and are based on information currently available to
Management. Certain material factors and assumptions were applied in
providing these forward-looking statements.
Management believes that the expectations reflected in forward-looking
statements are based upon reasonable assumptions; however, Management
can give no assurance that the actual results or developments will be
consistent with these forward-looking statements. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from current
expectations, including the matters discussed under "Risks and
Uncertainties" in First Capital Realty's 2011 Annual Report and "Risk
Factors" in its current Annual Information Form. Readers, therefore,
should not place undue reliance on any such forward-looking statements.
Further, a forward-looking statement speaks only as of the date on
which such statement is made. First Capital Realty undertakes no
obligation to publicly update any such statement or to reflect new
information or the occurrence of future events or circumstances except
as required by applicable securities law.
All forward-looking statements in this press release are made as of the
date hereof and are qualified by these cautionary statements.
SOURCE: First Capital Realty Inc.
For further information:
Dori J. Segal, President & CEO, or
Karen H. Weaver, Executive Vice President & CFO
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114