STELLARTON, NOVA SCOTIA--(Marketwired - May 21, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Crombie Real Estate Investment Trust ("Crombie" or the "REIT") (TSX:CRR.UN) announced today that it has entered into an agreement to sell, subject to regulatory approval and on a bought-deal basis, $60 million of trust units (the "Units") at a price of $13.25 per Unit to a syndicate of underwriters co-led by CIBC, Scotiabank, TD Securities Inc. and BMO Capital Markets. Closing is expected to occur on or about May 30, 2014, subject to receipt of the Toronto Stock Exchange and other necessary regulatory approvals. In addition, ECL Developments Limited ("ECL"), a wholly-owned subsidiary of Empire Company Limited, will purchase approximately $40 million of Class B LP Units on the same terms in satisfaction of its pre-emptive right with respect to the offering.
The REIT intends to use the net proceeds from both the offering and the concurrent purchase by ECL to reduce outstanding borrowings under the REIT's revolving credit facility and for general trust purposes, including possible future acquisitions.
The terms of the offering will be described in a supplement to Crombie's existing short form base shelf prospectus dated May 13, 2014, to be filed with Canadian securities regulators on or about May 23, 2014.
The underwriting syndicate was co-led by CIBC, Scotiabank, TD Securities Inc. and BMO Capital Markets and also includes National Bank Financial Inc., RBC Capital Markets, Canaccord Genuity Corp., Desjardins Securities Inc. and Raymond James Ltd.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Units will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Crombie Real Estate Investment Trust is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie currently owns a portfolio of 250 commercial properties across Canada, comprising approximately 17.6 million square feet with a strategy to own and operate a portfolio of high quality grocery and drug store anchored shopping centres and freestanding stores in Canada's top 36 markets.
This news release contains forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements, and include statements regarding the expected use of proceeds of the offering and the ECL private placement and the expecting timing for closing the offering and the ECL private placement. These statements reflect current beliefs and are based on information currently available to management of Crombie. Forward looking statements necessarily involve known and unknown risks and uncertainties.
A number of factors, including those risks discussed in the 2013 annual Management Discussion and Analysis under "Risk Management", could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
More information about Crombie can be found on Crombie's web site at www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.