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Press release from CNW Group

FIRST CAPITAL REALTY ANNOUNCES ADDITIONAL C$65 MILLION OFFERING OF 5.60% SERIES M SENIOR UNSECURED DEBENTURES

Friday, June 03, 2011

FIRST CAPITAL REALTY ANNOUNCES ADDITIONAL C$65 MILLION OFFERING OF 5.60% SERIES M SENIOR UNSECURED DEBENTURES12:15 EDT Friday, June 03, 2011/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/TORONTO, June 3, 2011 /CNW/ - First Capital Realty Inc. (TSX:FCR) (the "Company"), Canada's leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas, announced today that it has agreed to issue, on a bought deal basis, C$65 million principal amount of Series M senior unsecured debentures, which is a re-opening of this series of debentures, the original issuance of which was completed in March 2011. These debentures bear interest at the rate of 5.60% and will mature on April 30, 2020. The additional debentures were sold at a price of $102.486 per $100.00 principal amount plus accrued interest, with an effective yield of 5.244% if held to maturity. An aggregate of $175 million of such debentures will be outstanding after giving effect to this offering.  The offering is being underwritten by a syndicate led by TD Securities. Subject to customary closing conditions, the offering will close on June 13, 2011. It is a condition of closing to the offering that the debentures be rated BBB with a stable trend by DBRS and Baa3 (stable) by Moody's Investors Service.The offering is being made under the Company's base shelf prospectus dated May 25, 2011 and the debentures will be issued pursuant to the Company's trust indenture dated June 21, 2005, as supplemented.  These debentures will rank pari passu with the Company's outstanding senior unsecured debentures.The net proceeds of the offering will be used for development and redevelopment activities, acquisitions and for general corporate purposes.The securities 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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.ABOUT FIRST CAPITAL REALTY (TSX:FCR)First Capital Realty is Canada's leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas. The Company currently owns interests in 163 properties, including three under development, totalling approximately 22.4 million square feet of gross leasable area and seven sites in the planning stage for future retail development.This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "expects", "believes", "estimates", "will" and similar expressions. The forward-looking statements are not historical facts but reflect the Company's current expectations regarding future results or events and are based on information currently available to Management. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements.Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Company's Management's Discussion and Analysis for the year ended December 31, 2010 and under "Risk Factors" in the Company's current Annual Information Form. 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. First Capital Realty undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws.These forward-looking statements are made as of the date of this press release. For further information: Dori J. Segal, President & C.E.O., or Karen H. Weaver, E.V.P. & C.F.O. First Capital Realty Inc. 85 Hanna Avenue, Suite 400 Toronto, Ontario, Canada M6K 3S3 Tel: (416) 504-4114 Fax: (416) 941-1655 www.firstcapitalrealty.ca