Dundee REIT
TSX : D.UN

Dundee REIT

January 14, 2014 13:04 ET

Dundee REIT Announces $150 Million Offering of 4.074% Series C Senior Unsecured Debentures

TORONTO, ONTARIO--(Marketwired - Jan. 14, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

DUNDEE REIT (TSX:D.UN) announced today that it has agreed to issue, on a bought deal basis, C$150 million aggregate principal amount of series C senior unsecured debentures. These debentures will bear interest at a rate of 4.074% per annum and will mature on January 21, 2020. The debentures were sold at a price of $100.00 per $100 principal amount, with an effective yield of 4.074% if held to maturity. The offering is being underwritten by a syndicate led by TD Securities, along with co-leads RBC Capital Markets and Scotia Capital Inc. Subject to customary closing conditions, the offering will close on January 21, 2014. It is a condition of closing to the offering that the debentures be rated at least BBB (low) with a stable trend by DBRS. The offering is being made under Dundee REIT's base shelf prospectus dated November 26, 2012 and the debentures will be issued pursuant to Dundee REIT's trust indenture dated June 13, 2013, as supplemented. These debentures will rank pari passu with Dundee REIT's outstanding senior unsecured debentures.

The net proceeds of the offering will be used for the repayment of existing indebtedness and for general trust purposes.

The debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Dundee REIT is an unincorporated, open-ended real estate investment trust. Dundee REIT is focused on owning, acquiring, leasing and managing well-located, high-quality central business district and suburban office properties. Its portfolio currently comprises approximately 24.5 million square feet of gross leasable area in major urban centres across Canada. Dundee REIT's portfolio is well diversified by geographic location and tenant mix. For more information, please visit www.dundeereit.com.

This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee REIT's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dundee REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee REIT's website at www.dundeereit.com.

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