/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
HALIFAX, Dec. 10, 2012 /CNW/ - Killam Properties Inc. (TSX: KMP) is
pleased to announce that it has closed its previously announced public
share offering ("the Offering"), on a bought-deal basis, of 2,500,000
shares ("the Shares"), to the public at a price of $12.00 per share for
gross proceeds of $30.0 million.
The Offering was made pursuant to an underwriting agreement with a
syndicate of underwriters lead by RBC Capital Markets and including BMO
Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD
Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd.,
Macquarie Capital Markets Canada Ltd., GMP Securities L.P., Raymond
James Ltd. and Brookfield Financial Corp. The underwriters have the
option, exercisable up to 30 days after closing of the Offering, to
purchase up to an additional 375,000 common shares at the same offering
price which, if exercised in full, would increase the total gross
proceeds to $34.5 million.
Killam intends to use the proceeds from the Offering to repay certain
indebtedness, including the redemption of its $10 million of unsecured
subordinated debentures which bear interest at a weighted average
contractual rate of 6.16% and mature on January 4, 2013, and the
balance to fund future property acquisitions and developments, and for
general corporate purposes.
The Shares being offered have not been and will not be registered under
the United States Securities Act of 1933, as amended, and state
securities laws. Accordingly, the Shares may not be offered or sold in
the United States absent registration or an exemption from the
registration requirements of that Act
Killam Properties Inc., based in Halifax, Nova Scotia, is one of
Canada's largest residential landlords, owning, operating and
developing multi-family apartments and manufactured home communities.
Note: The Toronto Stock Exchange has neither approved nor disapproved of
the information contained herein. Certain statements in this report may
constitute forward-looking statements relating to the offering, our
operations and the environment in which we operate, which are based on
our expectations, estimates, forecast and projections, which we believe
are reasonable as of the current date. Such forward-looking statements
involve risks, uncertainties and other factors which may cause actual
results, performance or achievements of Killam to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. For more
exhaustive information on these risks and uncertainties, you should
refer to our most recently filed annual information form which is
available at www.sedar.com. 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 and should not be relied upon as of any other date.
Other than as required by law, Killam does not undertake to update any
of such forward-looking statements.
SOURCE: KILLAM PROPERTIES INC.
For further information:
Killam Properties Inc.
President & CEO
Vice President, Investor Relations and Corporate Planning