SOURCE: Calloway Real Estate Investment Trust

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May 27, 2015 15:48 ET

Calloway Real Estate Investment Trust Announces Redemption of 5.75% Convertible Unsecured Subordinated Debentures

TORONTO, ON--(Marketwired - May 27, 2015) -

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

Calloway Real Estate Investment Trust ("Calloway") (TSX: CWT.UN) today announced that it is issuing a notice of redemption to holders of its 5.75% convertible unsecured subordinated debentures due June 30, 2017 (the "Debentures"), representing a redemption in full of all of the currently outstanding 5.75% Convertible Debentures. The Debentures will be redeemed on June 30, 2015 (the "Redemption Date"), in accordance with their terms, at a total redemption price of $1,000 plus accrued and unpaid interest of $28.75 up to but excluding the Redemption Date, both per $1,000 principal amount. Calloway intends to use cash on hand to pay the redemption price and accrued and unpaid interest to the extent that there are any unconverted Debentures outstanding on the Redemption Date. As at the close of trading on May 26, 2015, the aggregate principal amount of the Debentures outstanding was $55,579,000.

Pursuant to the terms of the trust indenture and the supplemental trust indenture governing the Debentures (collectively, the "Trust Indenture"), holders of the Debentures have the right until 5:00 p.m. on the last business day prior to the Redemption Date to convert their Debentures into Units of Calloway ("Units") in accordance with the Trust Indenture, at a conversion price of $25.75 per Unit, being a rate of approximately 38.84 Units per $1,000 principal amount of Debentures.

About Calloway

Calloway is one of Canada's largest real estate investment trusts with an enterprise value of approximately $7 billion. It owns and manages approximately 27 million square feet in 121 value-oriented principally Walmart anchored retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. In addition, Calloway is a joint-venture partner in the Toronto and Montreal Premium Outlets. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers. For more information on Calloway, visit www.callowayreit.com.

Contact Information

  • For more information, please contact:

    Peter Sweeney
    Chief Financial Officer
    Calloway Real Estate Investment Trust
    (905) 326-6400 ext. 7865