Calloway Real Estate Investment Trust
TSX : CWT.UN

Calloway Real Estate Investment Trust

April 06, 2009 10:40 ET

Calloway Real Estate Investment Trust Announces $150 Million Series C Senior Unsecured Debenture Issue

TORONTO, ONTARIO--(Marketwire - April 6, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Calloway Real Estate Investment Trust ("Calloway") (TSX:CWT.UN), Canada's largest owner of large format unenclosed retail properties, announced today that it has agreed to issue $150 million principal amount of Series C senior unsecured debentures on a bought deal basis. These debentures will carry a coupon rate of 10.25% and will mature on April 14, 2014. The offering is being underwritten by a syndicate led by RBC Capital Markets. The offering is expected to close on or about April 13, 2009. Dominion Bond Rating Service has provided Calloway with a provisional credit rating of BBB with a stable trend relating to the debentures.

Calloway intends to use the net proceeds from the offering to repurchase approximately $150 million owing on Calloway's Series A 4.51% senior unsecured debentures due September 22, 2010. Subsequent to this transaction, there will remain approximately $50 million principal amount of Series A senior unsecured debentures outstanding. Together with the new Series C debentures and existing Series B debentures, the weighted average interest rate on all series of debentures will be approximately 6.9%.

Simon Nyilassy, President and CEO of Calloway commented, "We are pleased that Canadian investors have shown the confidence in Calloway to effectively extend its debt maturity profile on an unsecured basis in this market."

This offering is being made by way of a Prospectus Supplement to Calloway's existing $2 billion base shelf short form prospectus filed with Canadian securities regulatory authorities. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

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 being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration requirements.

About Calloway

Calloway Real Estate Investment Trust is an unincorporated open-end real estate investment trust focused on the ownership and development of high quality retail properties. Calloway's purpose is to deliver to its unitholders a stable, reliable and growing distribution. Calloway is Canada's largest owner of large format unenclosed retail properties with total assets of approximately $4.2 billion. It has ownership interests in a portfolio of 127 shopping centres and two industrial buildings across Canada containing an aggregate of approximately 21.9 million square feet. For further information, please refer to Calloway's website at www.callowayreit.com.

Contact Information

  • Calloway Real Estate Investment Trust
    Bart Munn
    Chief Financial Officer
    (905) 326-6400 (ext. 7631)