FREDERICTON, NB, April 13 /CNW/ - Plazacorp Retail Properties Ltd.
(PLZ:TSX Venture) announced today that it intends to raise $3 million through
a mortgage bond offering. The bonds, which bear interest at 7.5% per annum,
payable quarterly will mature on June 30, 2012 and will be secured by
mortgages on real estate or on undispersed bond proceeds. The proceeds from
the sale will be used to finance future acquisitions and development of retail
real estate. The offering is fully subscribed and is expected to close in two
tranches on April 25, 2007 and May 16, 2007.
Plazacorp President and CEO Michael Zakuta said, "This $3 million
offering will be the fourth series of Mortgage Bonds issued by Plazacorp. Our
mortgage bond program has proven to be extremely valuable for Plazacorp in its
pursuit of its new developments. The bonds allow Plazacorp to finance new
retail developments quickly and efficiently and also provide Plazacorp with
the ability to complete and maximize long term financing for new development
properties at the most appropriate time. The use of these bonds helps to
preserve Plazacorp's equity for future investment and will allow us to achieve
our goal to deliver a reliable and growing dividend to our shareholders."
The Mortgage Bonds will be offered to Canadian Residents in reliance on
statutory exemptions from prospectus and registration requirements. The
Mortgage Bonds are RRSP eligible.
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip
plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns
interests in 80 properties comprising 4.0 million square feet of retail real
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: on Plazacorp, visit our website at www.plaza.ca
or contact: Earl Brewer, Chairman or Kim Sharpe, Director of Business
Development, (506) 451-1826