Slate Retail REIT Announces the Closing of New Financing Arrangements Totalling U.S.$500 Million

/NOT FOR DISSEMINATION IN THE UNITED STATES/
(All amounts in USD)

TORONTO, Dec. 22, 2014 /CNW/ - Slate Retail REIT ("Slate Retail" or the "REIT") (TSX: SRT.U / SRT.UN) is pleased to announce that is has entered into two new financing arrangements, summarized as follows:

• A $50 million, 10-year fixed rate mortgage at 3.80%, secured by three of the REIT's existing properties. Guggenheim Partners is the lender.
  
  
• A $450 million corporate credit facility (the "Corporate Facility"), comprised of term loan and revolving components, each for $225 million. The Corporate Facility retires and replaces approximately $240 million of existing corporate credit facilities. The term loan component has a four-year tenure with one 12-month extension option. The revolving component has a three-year term plus two 12-month extension options. The entire Corporate Facility bears interest at a rate of LIBOR plus 175 to 250 basis points. The remaining capacity under the Corporate Facility is reserved for general corporate purposes and future acquisition opportunities. KeyBank Capital Markets acted as sole lead arranger and bookrunner. CIBC, Bank of America and BMO Capital Markets were co-syndication agents. Included in the syndicate are Royal Bank of Canada, Bank of Nova Scotia, TD Bank, and Raymond James.

The combination of the above-mentioned debt financings extends the REIT's debt maturity to approximately 5.2 years, effectively matching the REIT's weighted average lease term. Additionally, the REIT now has a significantly higher percentage of fixed rate debt and lower overall interest costs. The Corporate Facility includes structural enhancements that provide the REIT with the flexibility to convert to an unsecured structure in the future.

"As a significant owner of Slate Retail, management fundamentally understands the importance of a prudent debt capital strategy," said Blair Welch, CEO. "Combined, these latest financing initiatives extend the REIT's debt maturity profile, lower interest costs and meaningfully increase the proportion of fixed rate debt. The corporate facility in particular provides committed debt capacity to capitalize on what, in our view, is an exceptional opportunity to acquire high quality grocery-anchored shopping centres across the United States at attractive prices, below replacement costs."

About Slate Retail REIT
Slate Retail REIT is an open-ended real estate investment trust focused on U.S. grocery-anchored real estate. The REIT's portfolio includes over 40 properties located primarily across the top 50 U.S. metro markets. The REIT is focused on maximizing value through internal organic rental growth and strategic acquisitions. For more information, please visit www.slateretailreit.com.

SOURCE: Slate Retail REIT

Blair Welch, Chief Executive Officer, 416 644 4267; Brady Welch, Chief Financial Officer, 416 644 4263