Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

September 15, 2005 15:47 ET

Calloway Real Estate Investment Trust Announces Final Size And Pricing Terms Of Its Inaugural Senior Unsecured Debenture Offering

CALGARY, ALBERTA--(CCNMatthews - Sept. 15, 2005) -

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Calloway REIT (TSX:CWT.UN) announced today that it has agreed to issue, on an agency basis, $200 million principal amount of Series A senior unsecured debentures (the "Debentures") with a maturity date of September 22, 2010 and a coupon rate of 4.51%. The issue, as a result of strong investor demand, was upsized from the originally intended issue size of $150 million. A syndicate led by RBC Capital Markets and including Scotia Capital Inc. acted as agents for the sale of the Debentures. Closing of this issue is expected on or about September 22, 2005. This offering is being made under Calloway's base shelf prospectus dated September 14, 2005 qualifying the issue of up to $2 billion in debt or equity securities. The net proceeds from the issue will be used primarily to pay down outstanding credit facilities and for general trust purposes. The Debentures have been rated BBB (Stable) by Dominion Bond Rating Services.

"We are thrilled to be coming to the market with our first senior unsecured debt offering," commented Simon Nyilassy, President and CEO. "This provides Calloway with a new and important source of capital to fund our growth as Canada's largest owner of large format unenclosed retail properties."

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 stable and reliable cash distributions, which continuously increase over time. Calloway is Canada's largest owner of large format unenclosed retail properties with total assets of approximately $2.4 billion. It has ownership interests in a portfolio of 84 retail properties and 4 industrial properties across Canada containing an aggregate of approximately 14.2 million square feet.

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Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400 (ext. 7649)