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 Marketwire

Calloway REIT Announces Public Offering of $125 Million of Series H Senior Unsecured Debentures

Thursday, July 19, 2012

Calloway REIT Announces Public Offering of $125 Million of Series H Senior Unsecured Debentures12:21 EDT Thursday, July 19, 2012TORONTO, ONTARIO--(Marketwire - July 19, 2012) -NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICESCalloway Real Estate Investment Trust ("Calloway") (TSX:CWT.UN) announced today that it has agreed to issue $125 million principal amount of Series H senior unsecured debentures on a bought deal basis (the "Debentures"). These Debentures will carry a coupon rate of 4.05% and will mature on July 27, 2020. The issue is being offered by a syndicate of dealers led by CIBC. Closing of the offering is expected on or about July 27, 2012. Calloway intends to use the net proceeds from the offering for repayment of operating lines, funding of future acquisitions and for general trust purposes. Dominion Bond Rating Service has provided Calloway with a provisional credit rating of BBB with a stable trend to the Debentures. Calloway has granted the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the Debenture offering, to purchase a further $25 million principal amount of Debentures at the same terms as set forth above.This offering is being made by way of a Prospectus Supplement to Calloway's existing $2 billion base shelf prospectus dated October 31, 2011. The terms of offering will be described in prospectus supplements to be filed with Canadian securities regulators. The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. About Calloway Calloway is one of Canada's largest real estate investment trusts with an enterprise value of approximately $6 billion. It owns and manages approximately 26 million square feet in 118 value-oriented retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers. For more information on Calloway, visit FURTHER INFORMATION PLEASE CONTACT: Al MawaniCalloway Real Estate Investment TrustPresident and Chief Executive Officer(905) 326-6400 ext. 7649ORBart MunnCalloway Real Estate Investment TrustChief Financial Officer(905) 326-6400 ext.