Press Release

Crombie REIT Announces Offering of $150 Million Series D Notes

Company Release - 11/15/2017 4:15 PM ET

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

NEW GLASGOW, NS, Nov. 15, 2017 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced today that it entered into an agreement to issue $150 million aggregate principal amount Series D Notes maturing November 21, 2022. The Notes, which will be issued at par, will bear interest at a rate of 4.066% per annum.

The Notes are being offered with a syndicate of agents, co-led by TD Securities Inc., CIBC World Markets Inc. and National Bank Financial Inc. and including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., and Scotia Capital Inc. to sell, on a best efforts, private placement basis.

Net proceeds from the Notes offering will be used for the repayment of short term indebtedness outstanding under Crombie's revolving credit facility and its unsecured bilateral credit facility, and for general trust purposes.

The offering is expected to close on or about November 20, 2017 and is subject to customary closing conditions, including receipt of necessary consents and approvals and the Series D Notes receiving a rating of at least BBB(low) with negative trend from DBRS.

The Series D Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions. The offer and sale of Series D 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 D 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 does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Toronto Stock Exchange has neither approved nor disapproved the form or content of this press release.

About Crombie REIT

Crombie Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie currently owns a portfolio of 287 income-producing properties across Canada, comprising approximately 19.5 million square feet with a strategy to own, operate and develop a portfolio of high quality grocery and drug store anchored shopping centres, freestanding stores and mixed use developments primarily in Canada's top urban and suburban markets. More information about Crombie can be found at www.crombiereit.ca.

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, and include, without limitation, statements regarding the expected amount and timing of the offering which remains subject to the sale by the agents and may be impacted by market conditions, and statements regarding the use of financial flexibility that will result from the application of the proceeds of the offering, which may be impacted by market conditions and the future financial needs of Crombie.  There is no assurance that the offering will be completed.

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. A number of factors, including those discussed in the Management Discussion and Analysis for the year ended December 31, 2016 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.

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.

 

SOURCE Crombie REIT