Crombie REIT Announces Public Offering of $60 Million of Trust Units & Private
Placement of $40 Million of Class B LP Units
NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Crombie Real Estate Investment Trust
TSX SYMBOL: CRR.UN
MAY 21, 2014
Crombie REIT Announces Public Offering of $60 Million of Trust Units &
Private Placement of $40 Million of Class B LP Units
STELLARTON, NOVA SCOTIA--(Marketwired - May 21, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
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
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
FOR FURTHER INFORMATION PLEASE CONTACT:
Crombie Real Estate Investment Trust
Mr. Glenn Hynes, FCA
Executive Vice President, Chief Financial Officer
INDUSTRY: Real Estate and Construction - Commercial Real Estate
-0- May/21/2014 20:11 GMT
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