Calloway Real Estate Investment Trust
TSX : CWT.UN

Calloway Real Estate Investment Trust

September 23, 2010 12:43 ET

Calloway REIT Announces $100 Million Series F Senior Unsecured Debenture Issue and the Intended Redemption of 10.25% Series C Senior Unsecured Debentures

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) -

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

Calloway Real Estate Investment Trust ("Calloway") (TSX:CWT.UN) Calloway announced that it has entered into an agreement to issue $100 million principal amount of Series F senior unsecured debentures (the "Debentures") with a syndicate of underwriters led by CIBC. The Debentures will carry a coupon rate of 5.00% and will mature on February 1, 2019. Closing of the offering of the Debentures is expected to occur on or about October 1, 2010.

In connection with the previously announced offering of approximately $100 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.

The Debenture issuance is being made by way of prospectus supplement to Calloway's existing short form base shelf prospectus dated October 9, 2009. The prospectus supplement will be filed in all provinces of Canada.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Trust Units 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.

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.

This Press Release contains certain forward-looking statements that reflect management's current expectations and intentions. More specifically, certain statements contained in this Press Release with respect to Calloway's intention to use a portion of the net proceeds from the issuance of the Debentures and the Trust Units mentioned in this Press Release for the redemption of Calloway's outstanding 10.25% Series C senior unsecured debentures are forward-looking statements. The intended redemption of the Series C senior unsecured debentures is based on the assumption that the offerings of the Debentures and the Trust Units will close as expected and is subject to the risk that such offerings will not close as expected in which case the outstanding 10.25% Series C senior unsecured debentures may not be redeemed. There is also the risk that the intended redemption of the 10.25% Series C senior unsecured debentures may not proceed for other reasons not currently known to management. However, such forward looking statements contained in this Press Release reflect management's current beliefs and are based on information currently available to management.

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
    www.callowayreit.com