Toronto, Ontario (September 18, 2009) – First Capital Realty Inc. (TSX:FCR) (the “Company”), Canada’s leading owner, developer and operator of supermarket and drugstore-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas, announced today that it closed its previously announced offering of C$75 million aggregate principal amount of 6.25% convertible unsecured subordinated debentures due December 31, 2016 (the “Debentures”). The offering was underwritten by a syndicate of underwriters led by BMO Capital Markets, TD Securities Inc. and RBC Capital Markets on a bought deal basis. The Debentures will bear interest at a rate of 6.25% per annum payable semi-annually commencing March 31, 2010, and will be convertible at the option of the holder into common shares of the Company at a conversion rate of 43.6681 common shares per C$1,000 principal amount of Debentures, which is equal to a conversion price of C$22.90 per common share.
The Debentures, which are conditionally approved for listing on the Toronto Stock Exchange under the symbol FCR.DB.C, were issued pursuant to the Company’s trust indenture dated December 19, 2005, as supplemented, and rank pari passu with the Company’s outstanding 5.50% convertible unsecured subordinated debentures (TSX:FCR.DB.A and FCR.DB.B).
The net proceeds of the offering will be applied by the Company to pay down amounts owing on certain of its revolving credit facilities.
Subject to any required regulatory approvals, it is the Company’s current intention to satisfy the interest payable, and the principal on redemption or at maturity, by issuing to holders of Debentures that number of common shares obtained by dividing the amount payable by 97% of the volume-weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days prior to the interest payment date or date of redemption or maturity.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT FIRST CAPITAL REALTY (TSX:FCR)
First Capital Realty is Canada’s leading owner, developer and operator of supermarket and drugstore-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas. The Company currently owns interests in 175 properties, including four under development, totalling approximately 20.5 million square feet of gross leasable area and 7 land sites in the planning stage for future retail development.
For further information regarding First Capital Realty:
Dori J. Segal, President & C.E.O., or
Karen H. Weaver, Executive Vice President & C.F.O.
First Capital Realty Inc.
85 Hanna Ave., Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114
Fax: (416) 941-1655