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Press release from Marketwire

Calloway REIT Announces Increase to Previously Announced Series G Senior Unsecured Debenture Issue to $90 Million

Wednesday, August 17, 2011

Calloway REIT Announces Increase to Previously Announced Series G Senior Unsecured Debenture Issue to $90 Million15:43 EDT Wednesday, August 17, 2011TORONTO, ONTARIO--(Marketwire - Aug. 17, 2011) -NOT FOR DISSEMINATION OVER UNITED STATES NEWSWIRECalloway REIT (TSX:CWT.UN) announced today it has amended the terms of its previously announced offering of Series G senior unsecured debentures (the "Debentures") to increase the size of the offering from $75 million principal amount of Debentures to $90 million principal amount of Debentures. Closing of this issue is expected to be on or about August 22, 2011.The Debentures are being sold on a bought deal basis by a syndicate of dealers co-led by CIBC and RBC Capital Markets. The Debentures will carry a coupon rate of 4.70% and will mature on August 22, 2018.Calloway intends to use the net proceeds from the offering to in part complete the acquisition of three Walmart anchored Supercentres located in Ontario and for general trust purposes. Dominion Bond Rating Service has provided Calloway with a provisional credit rating of BBB with a stable trend relating to the debentures.This offering is being made by way of a Prospectus Supplement to Calloway's existing $2 billion base shelf short form prospectus filed with Canadian securities regulatory authorities. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.Calloway is one of Canada's largest real estate investment trusts with an enterprise value of $5.6 billion as at June 30, 2011. It owns and manages 24 million square feet in 113 value-oriented retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. Walmart will continue to be the dominant anchor tenant in the portfolio, and we expect their presence will continue to attract other retailers and consumers. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers.This press release contains "forward looking statements" such as the anticipated closing of the offering and the intended use of proceeds which are subject to various significant risks and uncertainties which may cause actual results, performances or achievements of Calloway to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such risk factors include, but are not limited to, risks associated with general market conditions, real property ownership, availability of cash flow, restrictions on redemption, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, Unitholder liability, potential conflicts of interest, potential dilution, and reliance on key personnel. Calloway cannot assure investors that actual results will be consistent with these forward looking statements and Calloway assumes no obligation to update or revise them to reflect new events or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Al MawaniCalloway Real Estate Investment TrustPresident and Chief Executive Officer(905) 326-6400 ext. 7649(905) 326-0783 (FAX)ORBart MunnCalloway Real Estate Investment TrustChief Financial Officer(905) 326-6400 ext. 7631(905) 326-0783 (FAX)