The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

First Capital Realty Announces Normal Course Issuer Bid for Convertible Debentures

Tuesday, August 23, 2011

First Capital Realty Announces Normal Course Issuer Bid for Convertible Debentures13:51 EDT Tuesday, August 23, 2011/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/TORONTO, Aug. 23, 2011 /CNW/ - First Capital Realty Inc. ("First Capital Realty") (TSX:FCR), 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, subject to final acceptance by the Toronto Stock Exchange, First Capital Realty intends to make a normal course issuer bid ("NCIB") for the following series of its convertible unsecured subordinated debentures: (i) 5.50% convertible unsecured subordinated debentures due September 30, 2017, Class CDN (the "5.50% Debentures (Class CDN)") (TSX:FCR.DB.A), (ii) 5.50% convertible unsecured subordinated debentures due September 30, 2017, Class US (the "5.50% Debentures (Class US)") (TSX:FCR.DB.B), (iii) 6.25% convertible unsecured subordinated debentures due December 31, 2016 (the "6.25% Debentures") (TSX:FCR.DB.C), (iv) 5.70% convertible unsecured subordinated debentures due June 30, 2017 (the "5.70% Debentures") (TSX:FCR.DB.D), and (v) 5.40% convertible unsecured subordinated debentures due January 31, 2019 (the "5.40% Debentures") (TSX:FCR.DB.E).  All convertible debentures purchased under the NCIB will be cancelled.First Capital Realty will enter into one or more pre-defined automatic securities purchase plans with its broker from time to time during the course of its NCIB to enable purchases of convertible debentures under the NCIB to be made at times when First Capital Realty would ordinarily not be permitted to, due to its self-imposed internal blackout periods, insider trading rules or otherwise. The series and classes of convertible debentures subject to an automatic plan may vary.As of August 22, 2011, First Capital Realty had $127,433,500 principal amount of 5.50% Debentures (Class CDN) outstanding, $723,000 principal amount of 5.50% Debentures (Class US) outstanding, $67,658,000 principal amount of 6.25% Debentures outstanding, $50,000,000 principal amount of 5.70% Debentures outstanding and $57,500,000 principal amount of 5.40% Debentures outstanding.Under the NCIB, First Capital Realty may purchase such convertible debentures up to the following limits: Limit on Purchases (Principal Amount) Total Limit1 Daily Limit25.50% Debentures (Class CDN)$6,371,600 $15,0005.50% Debentures (Class US)$72,300 $1,0006.25% Debentures$6,682,900 $30,3005.70% Debentures$4,985,000 $10,7005.40% Debentures$5,750,000 $30,500Notes:Represents, in the case of the 5.50% Debentures (Class CDN), 5% of the issued and outstanding principal amount, and in the case of each of the 5.50% Debentures (Class US), 6.25% Debentures, 5.70% Debentures and 5.40% Debentures, 10% of the public float.Represents the greater of $1,000 principal amount of the applicable convertible debentures and 25% of the average daily trading volume of such convertible debentures for the six month period ended July 31, 2011.  Permitted "block" purchases are exempt from the applicable daily limit.First Capital Realty believes that its convertible debentures may trade in a range that may not fully reflect the value of the convertible debentures.  As a result, First Capital Realty believes that the purchase of convertible debentures from time to time can be undertaken at prices that make the acquisition of such securities an appropriate use of the company's available funds.  In addition, purchases under the NCIB may increase the liquidity of the convertible debentures.First Capital Realty intends to commence the NCIB on August 25, 2011.  The NCIB will expire on August 24, 2012 or such earlier date as First Capital Realty completes its purchases pursuant to the NCIB.  First Capital Realty has purchased $943,000 principal amount of 5.50% Debentures (Class CDN) and $7,185,000 principal amount of 6.25% Debentures in the past twelve months.  All purchases made under the NCIB will be made through the facilities of the TSX or other Canadian marketplaces and in accordance with the rules of the TSX at market prices prevailing at the time of purchase.  The actual amount of convertible debentures that may be purchased under the NCIB is subject to, and cannot exceed, limits referred to above and the timing of such purchases will be determined by First Capital Realty.About First Capital RealtyFirst 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 165 properties, including four under development, totalling approximately 22.9 million square feet of gross leasable area and six sites in the planning stage for future retail development.Forward-Looking StatementsThis press release contains forward-looking statements and information within the meaning of applicable securities law. Forward-looking statements can be identified by the expressions "expects", "believes", "estimates", "will", "anticipates" 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. 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 consistent with these forward-looking statements. 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 First Capital Realty's Management's Discussion and Analysis and under "Risks Factors" in its 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 applicable securities laws. All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements. For further information: Dori J. Segal, President & C.E.O., or Karen H. Weaver, Executive Vice President & 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