/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
FREDERICTON, Oct. 24, 2013 /CNW/ - Plazacorp Retail Properties Ltd.
("Plazacorp" or the "Company") (TSX: PLZ) announced today that it has
closed its previously announced bought deal public offering (the
"Offering") of 9,400,000 common shares (the "Shares") of Plazacorp
issued from treasury at a price of $4.25 per Share for gross proceeds
to the Company of $40 million and $30 million aggregate principal
amount of 5.75% convertible unsecured subordinated debentures due
December 31, 2018 (the "Debentures"). The underwriting syndicate for
the Offering was led by RBC Capital Markets. The Debentures are
convertible at the option of the holder, into common shares of the
Company at $5.75 per common share.
Plazacorp has granted the Underwriters an over-allotment option (the
"Over-Allotment Option"), exercisable in whole or in part up to 30 days
after closing of the Offering, to purchase up to an additional
1,410,000 common shares and $4.5 million additional aggregate principal
amount of Debentures to cover over-allotments, if any.
As previously announced, Plazacorp intends to use the net proceeds from
the Offering as follows:
(i)
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approximately $15 million to fully repay the balance that is currently
outstanding on the Company's operating line of credit (the majority of
which was drawn to fund Plazacorp's on-going development and
re-development program and previous acquisitions);
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(ii)
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approximately $35 million to partially repay the Company's bridge
facility, which was drawn to fund the cash portion of its acquisition
of KEYreit;
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(iii)
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approximately $16 million to redeem the currently outstanding Series A
7.75% convertible unsecured subordinated debentures, which mature on
December 31, 2014 and which have a par call date of December 31, 2013
(the "Series A Debentures"). Plazacorp intends to provide notice of
redemption to holders of the Series A Debentures in November 2013; and
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(iv)
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the remainder, if any, will be used to fund the Company's future and
on-going development and re-development activities and for general
corporate purposes.
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Plazacorp intends to use the net proceeds, if any, from any exercise of
the Over-Allotment Option to partially repay the bridge facility.
ABOUT PLAZACORP
Plazacorp is a leading retail property owner and developer, particularly
in Eastern Canada. Plazacorp has an entrepreneurial focus with strong
"value-add" capabilities. Plazacorp's current portfolio includes
interests in approximately 343 properties totaling approximately 6.6
million square feet across Canada and additional lands held for
development. Plazacorp's properties include a mix of strip plazas,
stand-alone small box retail outlets and enclosed shopping centres,
anchored by approximately 90% national tenants. Total assets have
reached almost $1 billion. Plazacorp is fully internalized, therefore
providing shareholders directly with the synergies that come with an
internalized management structure. Plazacorp has proven its strong
"value-add" capabilities to develop, redevelop and acquire retail real
estate throughout Canada. Plazacorp has a strong track record of
generating growth in distributions, having increased its distributions
at least once every year in the last 10 years.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
All statements in this press release that do not relate to historical
facts constitute forward-looking statements. These statements represent
Plazacorp's intentions, plans, expectations and beliefs and are subject
to certain risks and uncertainties that could result in actual results
differing materially from these forward-looking statements. These risks
and uncertainties are more fully described in regulatory filings that
can be obtained on SEDAR at www.sedar.com.
SOURCE Plazacorp Retail Properties Ltd.
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Visit our website at: www.plaza.ca
Or contact: Michael Zakuta, President and Chief Executive Officer, at (514) 457-0997 or Floriana Cipollone, Chief Financial Officer, at (416) 848-4583
Copyright CNW Group 2013