Press release from CNW Group
Crombie REIT Announces Redemption of Outstanding 7% Convertible Debentures due March 20, 2013
Wednesday, April 18, 2012
STELLARTON, NS, April 18, 2012 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it has exercised its right to redeem its 7% Extendible Convertible Unsecured Subordinated Debentures maturing on March 20, 2013 (the "Debentures") in accordance with the terms of the trust indenture dated March 20, 2008 governing the Debentures. The redemption of the Debentures will be effective on May 23, 2012 (the "Redemption Date"). Upon redemption, Crombie will pay to the holders of Debentures the redemption price (the "Redemption Price") equal to the outstanding principal amount of the Debentures to be redeemed, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $1,027.62 per $1,000 principal amount of Debentures, less any taxes required to be deducted or withheld.
The aggregate principal amount of Debentures currently outstanding is $29,535,000. Crombie intends to draw funds from its existing revolving line of credit to pay the Redemption Price of the redeemed Debentures. The Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "CRR.DB" and may be converted in accordance with their terms into Units of Crombie until May 22, 2012.
Crombie is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. The trust invests in income-producing retail, office and mixed-use properties in Canada, with a future growth strategy focused primarily on the acquisition of retail properties. Crombie currently owns a portfolio of 161 investment properties in nine provinces, comprising approximately 13.5 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.
This news release may contain 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. 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 discussed in the 2011 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 correct.
Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward-looking statements.
Additional information relating to Crombie can be found on Crombie's web site at www.crombiereit.com or on the SEDAR web site for Canadian regulatory filings at www.sedar.com.
For further information:
Mr. Glenn Hynes, FCA
Chief Financial Officer and Secretary