Crombie REIT announces closing of $175 million Series A Notes offering

Crombie Real Estate Investment Trust  announced that it has completed its previously announced $175 million offering on a private placement basis of 3.986% Series A Notes with a five-year term due October 31, 2018 (Senior Unsecured).  The Series A Notes were offered at a price of $1,000 per $1,000 principal amount.
 
The Series A Notes were sold pursuant to an Agency Agreement with a syndicate of agents, co-led by Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and including RBC Dominion Securities Inc. and TD Securities Inc. The Series A Notes received a provisional rating of BBB (low) with a stable trend from DBRS, subject to the completion of Crombie's previously announced acquisition of a portfolio of retail properties from a wholly-owned subsidiary of Sobeys Inc.
 
The net proceeds from the sale of the Series A Notes will be held in escrow by an escrow agent pending the satisfaction of the conditions to closing, among other things, in connection with the portfolio acquisition from Sobeys.  Upon release from escrow, Crombie will use the net proceeds from the offering to, directly or indirectly, partially fund the acquisition. If the escrow release conditions are not satisfied on or before March 12, 2014 or if the acquisition is terminated, the Series A Notes will be subject to a special mandatory redemption. The redemption price for any special mandatory redemption would be 100% of the aggregate principal amount of the Series A Notes, together with accrued and unpaid interest from the date of settlement up to but not including the date of the special mandatory redemption.
 
The Series A Notes were sold in Canada on a private placement basis pursuant to certain prospectus exemptions and are subject to a hold period expiring March 1, 2014.  The offer and sale of the Series A Notes will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the Series A Notes may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
 

on October 31, 2013