Killam Properties Inc.

TSX : KMP


Killam Properties Inc.

November 19, 2012 16:21 ET

Killam Announces $30 Million Public Offering of Common Shares

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 19, 2012) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Killam Properties Inc. ("Killam") (TSX:KMP) is pleased to announce that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, subject to regulatory approval, on a bought deal basis, 2,500,000 common shares (the "Shares") for $12.00 per Share for gross proceeds of $30,000,000. In addition, Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation portion for an additional 375,000 Shares, exercisable up to 30 days after closing of the offering.

Killam intends to use the net proceeds from this offering to repay certain indebtedness, including the redemption of its $10 million of unsecured subordinated debentures which bear interest at a weighted average contractual rate of 6.16% and mature on January 4, 2013, and the balance to fund future property acquisitions and developments, and for general corporate purposes.

Killam will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, excluding Quebec, a preliminary short form prospectus relating to the issuance of the Shares. Closing of the offering is expected to take place on or about December 10, 2012.

This press release is not an offering of securities for sale in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and state securities laws. Accordingly, the Shares may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

Corporate Profile

Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities.

Note: Certain statements in this report may constitute forward-looking statements relating to the offering, our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

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