"NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES"
STELLARTON, NS, Oct. 31, 2013 /CNW/ – Crombie Real Estate Investment
Trust (TSX: CRR.UN) announced today that it has completed its
previously announced $175 million offering on a private placement basis
of 3.986% Series A Notes with a five-year term due October 31, 2018
(Senior Unsecured). The Series A Notes were offered at a price of
$1,000 per $1,000 principal amount.
The Series A Notes were sold pursuant to an Agency Agreement with a
syndicate of agents, co-led by Scotia Capital Inc., BMO Nesbitt Burns
Inc., CIBC World Markets Inc. and including RBC Dominion Securities
Inc. and TD Securities Inc. The Series A Notes received a provisional
rating of BBB (low) with a stable trend from DBRS, subject to the
completion of Crombie's previously announced acquisition of a portfolio
of retail properties from a wholly-owned subsidiary of Sobeys Inc.
The net proceeds from the sale of the Series A Notes will be held in
escrow by an escrow agent pending the satisfaction of the conditions to
closing, among other things, in connection with the portfolio
acquisition from Sobeys. Upon release from escrow, Crombie will use
the net proceeds from the offering to, directly or indirectly,
partially fund the acquisition. If the escrow release conditions are
not satisfied on or before March 12, 2014 or if the acquisition is
terminated, the Series A Notes will be subject to a special mandatory
redemption. The redemption price for any special mandatory redemption
would be 100% of the aggregate principal amount of the Series A Notes,
together with accrued and unpaid interest from the date of settlement
up to but not including the date of the special mandatory redemption.
The Series A Notes were sold in Canada on a private placement basis
pursuant to certain prospectus exemptions and are subject to a hold
period expiring March 1, 2014. The offer and sale of the Series A
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 A 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. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any offer, solicitation or sale of the securities in any
state in which such offer, solicitation or sale would be unlawful.
About Crombie
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 growth
strategy focused primarily on the acquisition of grocery- and
drugstore-anchored retail properties. Crombie currently owns a
portfolio of 180 commercial properties in nine provinces, comprising
approximately 14.6 million square feet of gross leasable area. 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 use of proceeds and
timing of release of proceeds from the offering which remains subject
to the completion of the acquisition.
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, 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.
Additional information relating to Crombie can be found on Crombie's web
site at www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.
SOURCE Crombie REIT