Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

September 30, 2010 09:15 ET

Calloway Real Estate Investment Trust Completes Offering of $115 Million of Trust Units

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) -


Calloway Real Estate Investment Trust ("Calloway" or the "REIT") (TSX:CWT.UN) announced that it has closed its previously announced offering of trust units ("Units"), pursuant to which Calloway issued and sold an aggregate of 4,738,000 Units (inclusive of 618,000 Units issued pursuant to the exercise in full of the Underwriters' over-allotment option) at a price of $24.30 per Unit for gross proceeds of $115,133,400.

The net proceeds from this $115,133,400 Unit offering as well as a portion of the net proceeds from Calloway's previously announced $100,000,000 offering of Series F senior unsecured debentures, will be used by the REIT, in part, for the redemption of Calloway's outstanding 10.25% Series C senior unsecured debentures.

A syndicate co-led by RBC Capital Markets, CIBC and BMO Nesbitt Burns Inc. acted as underwriters for the offering. The offering was made under Calloway's existing short form base shelf prospectus dated October 1, 2009. 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.

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.

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
    Calloway Real Estate Investment Trust
    Bart Munn
    Chief Financial Officer
    (905) 326-6400 ext. 7631