Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

October 12, 2006 12:19 ET

Calloway Real Estate Investment Trust Completes $250,000,000 Series B Unsecured Debentures Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) -

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Calloway REIT (TSX:CWT.UN)(TSX:CWT.DB) announced today that it has closed its previously announced offering of $250 million Series B senior unsecured debentures (the "Debentures") with a maturity date of October 12, 2016 and a coupon rate of 5.37%. A syndicate led by RBC Capital Markets and including Scotia Capital Inc. and TD Securities acted as underwriters for the sale of the Debentures. The offering was 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 to Calloway, after deducting the underwriters' fee, was $248.0165 million which will be used to pay down outstanding credit facilities, fund future acquisitions, and for general trust purposes. The Debentures have been rated BBB (Stable) by Dominion Bond Rating Services.

Mr. Simon Nyilassy, President and CEO of Calloway said, "This is the largest 10 year offering of its kind by a Canadian REIT - an acknowledgement from the market of Calloway's quality assets and income."

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 mission 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 $3 billion. It has ownership interests in a portfolio of 110 primarily retail properties across Canada containing an aggregate of over 16.5 million square feet of leased area and future development potential of approximately 4 million square feet.

The Toronto Stock Exchange neither approves nor disapproves of the contents of this Press Release.

Contact Information

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