Crombie REIT Announces $200 Million Equity Financing

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NEW GLASGOW, Nova Scotia, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Crombie Real Estate Investment Trust (“Crombie” or the “REIT”) (TSX: CRR.UN) announced today that it has entered into an agreement to sell, subject to regulatory approval and on a bought-deal basis, $117 million of trust units (the “Units”) at a price of $17.45 per Unit to a syndicate of underwriters led by Scotiabank and BMO Capital Markets (the “Equity Offering”). Closing is expected to occur on or about January 31, 2022, subject to receipt of the Toronto Stock Exchange and other necessary regulatory approvals. In addition, ECL Developments Limited, a wholly-owned subsidiary of Empire Company Limited (“Empire”), will purchase approximately $83 million of Class B LP Units of Crombie Limited Partnership and the associated special voting units of Crombie on a private placement basis on the same terms in satisfaction of its pre-emptive right with respect to the Equity Offering (together with the Equity Offering, the “Equity Financing”).
        
The REIT intends to use the net proceeds from the Equity Financing to repay outstanding indebtedness, to fund the REIT’s development pipeline and value-add capital programs with Empire, and for general trust purposes.