Choice Properties Real Estate Investment Trust Completes $250 million Issuance of Series E Senior Unsecured Debentures

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TORONTO, Feb. 5, 2015 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has completed its previously announced issuance of $250 million aggregate principal amount of Series E senior unsecured debentures (the "Debentures") of the Trust. The Debentures bear interest at a rate of 2.297% per annum and will mature on September 14, 2020.  The Debentures were sold at a price of $100.001 per $100 principal amount, with an effective yield of 2.297% per annum.

The offering was made under Choice Properties' short form base shelf prospectus dated September 3, 2013. The terms of the offering are described in a prospectus supplement dated February 2, 2015, which was filed with securities regulators in each of the provinces of Canada.

The net proceeds of the Debentures will be used by the Trust to repay existing indebtedness and for general business purposes.

DBRS Limited and Standard and Poor's Ratings Services have each provided the Debentures with a credit rating of "BBB". The Debentures rank equally with all other unsecured indebtedness of Choice Properties that has not been subordinated.

The Debentures were sold on an agency basis by a syndicate of agents co-led by RBC Capital Markets, CIBC, TD Securities and BMO Capital Markets. 

The Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward–Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events.  Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under the "Risk Factors" sections in Choice Properties' Third Quarter 2014 MD&A and current Annual Information Form.  Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

About Choice Properties Real Estate Investment Trust

Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located retail and commercial real estate across Canada. Choice Properties' portfolio spans approximately 39.8 million square feet of gross leasable area and consists of 474 properties primarily focused on supermarket-anchored shopping centres and stand-alone supermarkets. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through development, acquisitions and active property management. Choice Properties' principal tenant is Loblaw Companies Limited, Canada's largest food retailer. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.

SOURCE Choice Properties Real Estate Investment Trust

Kim Lee, Vice President, Investor Relations and Planning & Analysis, Choice Properties Real Estate Investment Trust, t [phone], e [email protected]