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Crombie Reit Announces Offering of $150 Million Series G Unsecured Notes
Crombie Reit Announces Offering of $150 Million Series G Unsecured Notes Canada Ne...
About this update from Crombie Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nCrombie Reit Announces Offering of $150 Million Series G Unsecured Notes\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntal{\nTEXT-ALIGN: LEFT\n}\n\n\n\n\n\n\n\nCanada NewsWire\nNEW GLASGOW, NS, Dec. 16, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n NEW GLASGOW, NS, Dec. 16, 2019 /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 of Series G Senior Unsecured Notes maturing June 21, 2027 (the \"Series G Notes\"). The Series G Notes will bear interest at a rate of 3.917% per annum and were priced at par. \nProceeds from the Series G Notes are ear-marked for the repayment of approximately $153 million of secured mortgages maturing on February 1, 2020 bearing a weighted average interest rate of 5.63% and will be utilized to temporarily reduce bank indebtedness in the interim.\n\"Closing out a busy 2019 by pre-funding the expiring Halifax Scotia Square mortgages with this Note offering advances several of Crombie's strategic priorities, reduces risks and harvests significant savings over the expiring interest rate,\" remarked Don Clow, President and CEO. \"We are extending our weighted average term to maturity and increasing our allocation to unsecured debt from secured debt, which provides greater flexibility to execute on our strategy. Our balanced capital structure and multiple sources of capital position us well for 2020.\"\nThe Series G Notes are being offered with a syndicate of agents, co-led by TD Securities Inc., Scotia Capital Inc., and National Bank Financial Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Desjardins Securities Inc., and RBC Dominion Securities Inc., to sell, on a best efforts, private placement basis. \nThe offering is expected to close on or about December 20, 2019 and is subject to customary closing conditions, including receipt of necessary consents and approvals and the Series G Notes receiving a rating of at least BBB(low) with a stable t...