Whiterock Real Estate Investment Trust
TSX : WRK.UN

Whiterock Real Estate Investment Trust

December 09, 2011 08:32 ET

Whiterock REIT Completes Concurrent Offerings of $20 Million of Trust Units and $45 Million of Convertible Debentures

TORONTO, ONTARIO--(Marketwire - Dec. 9, 2011) -

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

Whiterock Real Estate Investment Trust ("Whiterock" or the "REIT") (TSX:WRK.UN) announced today that it has closed its previously announced public offering consisting of 1,560,000 trust units of the REIT (the "Units") at a price of $12.85 per Unit for gross proceeds of $20,046,000 and a concurrent public offering of $45 million aggregate principal amount of 5.50% convertible unsecured subordinated debentures, Series H of the REIT due March 31, 2017 (the "Debentures") at a price of $1,000 per Debenture, for aggregate gross proceeds of approximately $65 million. Both offerings (collectively, the "Offering") were completed on a bought deal basis by a syndicate of underwriters led by TD Securities Inc. and including CIBC World Markets Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., Canaccord Genuity Corp., National Bank Financial Inc., Dundee Securities Ltd., Raymond James Ltd., Brookfield Financial Corp., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd., and Laurentian Bank Securities Inc. (collectively, the "Underwriters").

Whiterock has granted the Underwriters an over-allotment option to purchase up to a total of 234,000 additional Units and $6,750,000 additional aggregate principal amount of Debentures, exercisable, in whole or in part, at any time until 30 days following the closing of the Offering.

Whiterock intends to use the net proceeds of the Offering to repay its 6.30% convertible unsecured subordinated debentures, Series E maturing on December 31, 2011, to pay down borrowings under its revolving acquisition and operating credit facilities, to fund potential future property acquisitions, and for general trust purposes.

About Whiterock REIT

Whiterock REIT is a growth-oriented diversified commercial REIT with a wholly-owned, co-owned, and long-term leased aggregate real estate portfolio that totals approximately 10.2 million square feet of gross leasable area across 79 properties, geographically diversified across 8 Canadian provinces and 2 U.S. states.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities legislation, including, among others, statements relating to Whiterock's intended use of the proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "estimate", "anticipate", "intend", "believe" or "continue", the negative forms thereof and similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future events or performance and, by their nature, are based on Whiterock's estimates and assumptions, which are subject to known and unknown risks, uncertainties and other factors that may cause the actual events, results or prospects to be materially different from those expressed or implied herein. Readers are cautioned that a number of risks, uncertainties and other factors, including, but not limited to, the risk that the transactions described herein may not be completed in a timely way or at all, and the risks discussed in Whiterock's various securities filings, including the section entitled "Risk Factors" in Whiterock's Annual Information Form (available at www.sedar.com), that could cause actual events, results or prospects to differ materially from those stated or implied. These risks, uncertainties and other factors should be considered carefully, and a reader should not place undue reliance on forward-looking statements, as there can be no assurance that actual events, results or prospects will be consistent with such statements. Except as required by law, Whiterock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Whiterock Real Estate Investment Trust
    Jason Underwood
    CEO
    (416) 907-4861

    Whiterock Real Estate Investment Trust
    Kursat Kacira
    CFO
    (416) 572-0427
    www.whiterockreit.ca