Business & Finance
Business and Finance
Business and Finance
Wed, September 21, 2011
Tue, September 20, 2011 Scott';;s Real Estate Investment Trust closes $12 million convertible debenture offering
TORONTO, Sept. 20, 2011 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") today announced that it has closed its previously announced offering of $12 million convertible unsecured subordinated debentures due December 31, 2016 (the "Debentures").
The Debentures were offered through a syndicate of underwriters led by National Bank Financial Inc. and including Canaccord Genuity Corp., GMP Securities LP. and HSBC Securities (Canada) Inc.
The Debentures will pay interest at a rate of 8.00 per cent per annum calculated semi-annually in arrears on December 31 and June 30, with the initial interest payment on December 31, 2011.
The Debentures are convertible into fully paid and non-assessable units of Scott's REIT at a conversion price of $9.00 per unit, subject to adjustment upon the occurrence of certain events, at the holders' option at any time prior to the close of business on the earlier of December 31, 2016 and the business day immediately preceding the date fixed for redemption. The conversion price is equivalent to a ratio of approximately 111.1111 units per $1,000 principal amount of Debentures.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX:SRQ.UN) is Canada's premier small-box retail property owner with 220 properties in seven provinces across Canada. Scott's REIT's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. The REIT has an approximately 75.6 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX:SRQ.UN), visit our website at [ http://www.scottsreit.com ].
Forward-Looking Statements
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm LP, the REIT's largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2010. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at [ www.sedar.com ].
