RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

March 02, 2005 19:41 ET

RioCan Real Estate Investment Trust Announces Terms of Redemption of October 31, 2007 7.07% Series A and January 18, 2006 7.20% Series C Unsecured Debentures


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RIOCAN REAL ESTATE INVESTMENT TRUST

TSX SYMBOL: REI.UN

MARCH 2, 2005 - 19:41 ET

RioCan Real Estate Investment Trust Announces Terms of
Redemption of October 31, 2007 7.07% Series A and
January 18, 2006 7.20% Series C Unsecured Debentures

TORONTO, ONTARIO--(CCNMatthews - March 2, 2005) - As previously
announced, RioCan Real Estate Investment Trust (TSX:REI.UN) ("RioCan")
has begun to seek consents to permit it to redeem its October 31, 2007
7.07% Series A and January 18, 2006 7.20% Series C senior unsecured
debentures. RioCan announced today that, subject to receiving the
requisite debentureholder consents (being consent in writing from
holders of at least 75% of the outstanding principal amount of each
series of debentures), the redemption price for these debentures will be
equal to the greater of: (i) the Canada Yield Price on the date of
notice of redemption; and (ii) par, together in each case with accrued
and unpaid interest to the date fixed for redemption. The Canada Yield
Price is the price of the debentures calculated to provide a yield to
maturity, compounded semi-annually and calculated in accordance with
generally accepted financing practice, equal to the yield on an
equivalent term Government of Canada bond on the relevant date.

RBC Capital Markets, the dealer manager in conjunction with the consent
solicitation, has agreed to acquire 75% or more of each of the
outstanding Series A and Series C debentures in the open market, if
available, at a price equal to the Canada Yield Price on the date of
purchase. RioCan and RBC Capital Markets have agreed that if RBC Capital
Markets purchases an aggregate principal amount of Series A and Series C
debentures equal to or greater than 75% of the outstanding amounts of
each series of debentures, RBC Capital Markets will consent to the
amendment to permit RioCan to redeem both series of debentures. RBC
Capital Markets' agreement to purchase these debentures and consent is
conditional upon RioCan's commitment to redeem these two series of
debentures by no later than Thursday, March 10, 2005, assuming that RBC
Capital Markets acquires 75% or more of both series on or before March
4, 2005.

About RioCan

RioCan's purpose is to deliver to its unitholders stable and reliable
cash distributions, which continuously increase over time. RioCan is
Canada's largest real estate investment trust with total assets of
approximately $4.1 billion. It has ownership interests in a portfolio of
186 retail properties across Canada containing an aggregate of
approximately 45 million square feet, including partners' and shadow
anchors' interests.

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

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RioCan Real Estate Investment Trust
    Edward Sonshine, Q.C.
    President & CEO
    (416) 866-3018
    Website: www.riocan.com