"NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES"
STELLARTON, NS, Feb. 28, 2014 /CNW/ - Crombie Real Estate Investment Trust (TSX: CRR.UN) announced today that it entered into an agreement with a syndicate of underwriters, co-led by Scotia Capital Inc., CIBC World Markets Inc. and BMO Nesbitt Burns Inc. and including RBC Dominion Securities Inc., TD Securities Inc. and National Bank Financial Inc. to sell, on a bought deal, private placement basis, $100 million aggregate principal amount of 3.962 percent Series B Notes (senior unsecured) with an approximate seven-year and three-month term maturing June 1, 2021. The offering is expected to close on or about March 5, 2014 and is subject to customary closing conditions, including receipt of necessary consents and approvals and the Series B Notes receiving a rating of at least BBB(low) with stable trend from DBRS. The net proceeds of the offering will be used to repay existing debt and for general corporate purposes.
The Series B Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions. The offer and sale of Series B Notes will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the Series B Notes may not be offered or sold in 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 and applicable state securities laws.
Crombie Real Estate Investment Trust ("Crombie") is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie currently owns a portfolio of 249 retail and office properties across Canada, comprising approximately 17.6 million square feet with a strategy to own and operate a portfolio of high quality grocery and drug store anchored shopping centres and freestanding stores in Canada's top 36 markets. More information about Crombie can be found at www.crombiereit.com.
This news release may contain forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Crombie, and include, without limitation, statements regarding the expected amount and timing of the offering which remains subject to the sale by the underwriters and may be impacted by market conditions. There is no assurance that the offering will be completed.
Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward-looking statements. A number of factors, including those discussed in the Management Discussion and Analysis for the year ended December 31, 2013 under "Risk Management", could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
SOURCE: Crombie REIT
For further information:
Mr. Glenn Hynes, FCA
Executive Vice President, Chief Financial Officer and Secretary