STELLARTON, NS, Sept. 6, 2013 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it is exercising its right to redeem all of its outstanding Series B Convertible Unsecured Subordinated Debentures maturing on June 30, 2015 (the "Series B Debentures") in accordance with the terms of the trust indenture dated September 30, 2009 governing the Series B Debentures. The redemption of the Series B Debentures will be effective on October 11, 2013 (the "Redemption Date"). Upon redemption, Crombie will pay to the holders of Series B Debentures the redemption price (the "Redemption Price") equal to the outstanding principal amount of the Series B Debentures to be redeemed, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $1,017.64 per $1,000 principal amount of Series B Debentures, less any taxes required to be deducted or withheld.
The aggregate principal amount of Series B Debentures currently outstanding is $14,610,000. Crombie intends to draw funds from its existing revolving line of credit to pay the Redemption Price of the redeemed Series B Debentures. The Series B Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "CRR.DB.B" and may be converted in accordance with their terms into Units of Crombie until October 10, 2013.
Crombie Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. The trust invests in income-producing retail, office and mixed-use properties in Canada, with a future growth strategy focused primarily on the acquisition of retail properties. Crombie REIT currently owns a portfolio of 176 commercial properties in nine provinces, comprising approximately 14.5 million square feet of gross leasable area. More information about Crombie REIT 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. Forward-looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the annual Management Discussion and Analysis for the year ended December 31, 2012 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.
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.
SOURCE: Crombie REIT
For further information:
Mr. Glenn Hynes, FCA
Chief Financial Officer and Secretary