Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

October 01, 2010 08:43 ET

Calloway Real Estate Investment Trust Closes $100 Million Series F Senior Unsecured Debenture Issue

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2010) -


Calloway Real Estate Investment Trust ("Calloway") (TSX:CWT.UN) has closed its previously announced $100 million principal amount issue of Series F senior unsecured debentures. These debentures carry a coupon rate of 5.0% and mature on February 1, 2019. The issue was offered by a syndicate of underwriters led by CIBC.

In connection with the previously announced closing of approximately $115 million of Trust Units, Calloway intends to use a portion of the net proceeds from the issuance of these Debentures and the Trust Units for the redemption of Calloway's outstanding 10.25% Series C senior unsecured debentures and the balance for satisfying pipeline obligations and general trust purposes. 

Dominion Bond Rating Service has provided Calloway with a credit rating of BBB with a stable trend relating to the debentures.

This offering was 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 are described in a prospectus supplement dated September 24, 2010, which was filed with Canadian securities regulators.

10.25% Series C Debentures Redemption

As previously announced, the redemption date for the 10.25% Debentures will be October 25, 2010 (the "10.25% Debenture Redemption Date"). The redemption price of $1,209.59 for each $1,000 principal amount of 10.25% Debentures, being equal to the aggregate of (i) Canada Yield Price for such debentures, and (ii) all accrued and unpaid interest thereon to the 10.25% Debenture Redemption Date, will be paid in cash on the 10.25% Debenture Redemption Date. The redemption price for the 10.25% Debentures will be payable upon presentation and surrender of the 10.25% Debentures called for redemption at the corporate trust office of Computershare Trust Company of Canada, 100 University Avenue, 11th Floor, Toronto, Ontario M5J 2Y1, attention: Manger, Corporate Trust Services. There is currently $150,000,000 aggregate principal amount of 10.25% Debentures outstanding.

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 created to invest in a geographically diversified portfolio of high quality retail shopping centres in Canada.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400 ext. 7649
    Calloway Real Estate Investment Trust
    Bart Munn
    Chief Financial Officer
    (905) 326-6400 ext. 7631