Primaris Retail REIT

Primaris Retail REIT

October 06, 2009 09:00 ET

Primaris Retail REIT Closes Public Offering of $75 Million of Convertible Unsecured Debentures

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2009) –


Primaris Retail REIT (TSX:PMZ.UN) announced today that it has completed an issuance to the public of $75 million aggregate principal amount of 6.30% convertible unsecured subordinated debentures due September 30, 2015 (the "Debentures"), on a bought deal basis, through a syndicate of underwriters co-led by RBC Capital Markets and CIBC World Markets Inc., with RBC Capital Markets acting as bookrunner. The Debentures are convertible, at the option of the holder, into trust units of Primaris Retail REIT at $16.70 per trust unit.

As previously announced, Primaris Retail REIT has granted an over-allotment option exercisable at any time up to 30 days after Closing, to acquire additional Debentures up to the lesser of $11.25 million aggregate principal amount of Debentures and the Underwriters respective "Over-Allocation Position" as at the closing date.

The net proceeds from this offering (after deducting the Underwriters' fee and estimated offering expenses) will be used to fund future property acquisitions, the redevelopment of the REIT's existing properties and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.

Forward-Looking Information

The press release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, the REIT's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.

Although the forward-looking statements contained in this press release are based on what management of the REIT believes are reasonable assumptions, forward-looking statements involve significant risks and uncertainties. They should not be read as guarantees of future performance or results and will not necessarily be an accurate indicator of whether or not such results will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results to differ from targets, expectations or estimates expressed in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, economic, competitive and commercial real estate conditions, unplanned compliance-related expenses, uninsured property losses and tenant-related risks.

Primaris Retail REIT owns 26 income-producing properties comprising approximately 9.3 million square feet located in Canada. As of September 30, 2009, the REIT had 62,477,749 units issued and outstanding.

Contact Information

  • Primaris Retail REIT
    John R. Morrison
    President and Chief Executive Officer
    (416) 642-7860
    Primaris Retail REIT
    Louis M. Forbes
    Executive Vice President & Chief Financial Officer
    (416) 642-7810