Crombie Real Estate Investment Trust
TSX : CRR.UN

Crombie Real Estate Investment Trust

September 08, 2009 15:54 ET

Crombie REIT Announces $85 Million Offering of Convertible Unsecured Subordinated Debentures

STELLARTON, NOVA SCOTIA--(Marketwire - Sept. 8, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES

Crombie Real Estate Investment Trust ("Crombie") (TSX:CRR.UN) announced today that it has reached an agreement with a syndicate of underwriters co-led by CIBC World Markets Inc. and TD Securities Inc. to issue, on a bought-deal basis, $85 million of convertible unsecured subordinated debentures (the "Debentures").

The Debentures have a maturity date of June 30, 2015. The Debentures have a coupon of 6.25% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing on December 31, 2009. Each $1,000 principal amount of Debenture is convertible into approximately 90.9091 units of Crombie, at any time, at the option of the holder, representing a conversion price of $11.00 per unit.

In satisfaction of its pre-emptive right with respect to the Debenture offering and subject to regulatory approval, Empire Company Limited ("Empire") has agreed to subscribe for $10 million of Debentures at the offering price through its subsidiary ECL Developments Limited.

Crombie will use the net proceeds from this offering to repay debt and for general trust purposes.

The terms of the offering will be described in a short form prospectus to be filed with Canadian securities regulators on or about September 14, 2009. The Debenture offering is expected to close on or about September 30, 2009.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Debentures will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Crombie

Crombie is an 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 currently owns a portfolio of 113 commercial properties in seven provinces, comprising approximately 11.2 million square feet of rentable space. 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 include, without limitation, statements regarding the expected use of proceeds of the offering and the expected closing date of the offering, and 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 Risk Management section of Crombie's fiscal 2008 management's discussion and analysis, and of Crombie's management's discussion and analysis for the quarter ended June 30, 2009, and in the "Risks" section of Crombie's annual information form in respect of the year ended December 31, 2008, 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.

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.

Contact Information

  • Crombie REIT
    Scott Ball, C.A.
    Vice President, Chief Financial Officer and Secretary
    (902) 755-8100