FREDERICTON, Feb. 18 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture Exchange) announced today that it intends to raise $20 million through a convertible debenture offering. The debentures, which bear interest at 7.5% per annum, payable quarterly, will mature on March 31, 2015 and will be convertible into Plazacorp common shares at the option of the holder at any time at $3.80 per common share. Plazacorp will also have the right to redeem the debentures after March 31, 2013 under certain terms and conditions. Net proceeds from the sale will be used to finance future acquisitions, to retire existing debt including $10 million in 8.5% mortgage bonds and $5.1 million in 8.0% unsecured debentures, and for general corporate purposes.
"These convertible debentures will provide us with funds to: continue to grow our portfolio by developing high quality projects leased to some of Canada's best retailers; and to retire debt maturing in 2010. This will allow us to continue to pursue our goal of delivering a reliable and growing dividend to our shareholders", said Plazacorp President and CEO Michael Zakuta.
The debentures will be offered to Canadian Residents in reliance on statutory exemptions from prospectus and registration requirements. The debentures are RRSP eligible and are subject to the approval of the TSX Venture Exchange.
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout the Atlantic Provinces, Québec and Ontario. Plazacorp, as at February 18, 2010 now owns interests in 100 properties comprising 4.5 million square feet of retail real estate.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Plaza Retail REIT
For further information: For further information: on Plazacorp, visit our website at www.plaza.ca or contact: Earl Brewer, Chairman; Kim Sharpe, Director of Business Development, (506) 451-1826