Calloway Real Estate Investment Trust
TSX : CWT.UN

Calloway Real Estate Investment Trust

April 13, 2009 09:16 ET

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

TORONTO, ONTARIO--(Marketwire - April 13, 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 closed the issue of $150 million principal amount of Series C senior unsecured debentures announced on April 6, 2009. The debentures carry a coupon rate of 10.25% and will mature on April 14, 2014. The offering was underwritten by a syndicate led by RBC Capital Markets who acted as sole lead and sole bookrunner, and included BMO Nesbitt Burns Inc., TD Securities Inc. and Scotia Capital Inc. Dominion Bond Rating Service has provided Calloway with a credit rating of BBB with a stable trend relating to the debentures.

Calloway used the net proceeds from the offering of approximately $149.1 million to repurchase the same principal amount of Calloway's Series A 4.51% senior unsecured debentures due September 22, 2010 (the "Series A Debentures"). In addition, in connection with the offering, Calloway utilized its operating credit facilities to repurchase a further $4.4 million aggregate principal amount of its Series A Debentures, for a total repurchase of approximately $153.5 million. Subsequent to these transactions, there remains approximately $46.5 million principal amount of Series A 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 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)
    www.callowayreit.com