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RioCan issues $100-million of units Add to ...

Shopping mall developer RioCan Real Estate Investment Trust has agreed to sell $100-million worth of its trust units to the public through a syndicate of underwriters.

Net proceeds will be used to fund development activities and future property acquisitions and to bolster RioCan's cash reserves, the income trust said Monday.

The syndicate has agreed to sell nearly 6.9 million of the RioCan trust units at $14.50 per unit.

The underwriters will have the option to purchase up to an additional 1.7 million units up to 48 hours before the offering closes, for an additional $25-million.

RioCan currently has about 222.4 million units outstanding, so the equity offering would increase the number by about 4 per cent.

The units closed Monday at $15.46, up 69 cents from the previous close and about 6.5 per cent above the offering price.

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