Toronto, Ontario (June 27, 2007) - First Capital Realty Inc. (“First Capital Realty”) (TSX:FCR) Canada’s leading owner, developer and operator of supermarket-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas, announced today that it has entered into agreements for the sale, on a private placement basis, of an aggregate of $50 million aggregate principal amount of 5.50% convertible unsecured subordinated debentures maturing on September 30, 2017 (the “Debentures”) at a price of $107 per $100 principal amount of Debentures, for net proceeds of $53.4 million, plus accrued interest to the date of closing. RBC Capital Markets led a syndicate of investment dealers that acted as First Capital Realty’s agents in connection with the private placement that was previously announced June 20, 2007.
The agreements include an agreement with Gazit Canada Inc., the Company’s largest shareholder, in respect of the sale to it of $49 million aggregate principal amount of Debentures. Closing of the private placement is scheduled to occur June 29, 2007.
The Debentures will have the same terms and conditions, and be considered to be a part of, the “Class Cdn Debentures” class of “Initial Debentures” as defined in the indenture dated December 19, 2005 between First Capital Realty and Computershare Trust Company of Canada, as supplemented (the “Indenture”). The Class Cdn Debentures are listed on the TSX under the symbol FCR.DB.A.
Subject to any required regulatory approval, it is First Capital Realty’s current intention to satisfy the interest payable and the principal on redemption or maturity of the Debentures in accordance with the terms of the Debentures, by issuing to holders of Debentures that number of common shares in the capital of the Company 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 net proceeds from this offering will be used to pay down amounts owing on certain of First Capital Realty’s revolving credit facilities, to fund future acquisitions and development activities and for general corporate purposes.
ABOUT FIRST CAPITAL REALTY
First Capital Realty is Canada’s leading owner, developer and operator of supermarket-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas. The Company currently owns interests in 163 properties, including seven under development, with approximately 19.1 million square feet of gross leasable area, and also has nine land sites in the planning stage for future retail development. In addition, the Company owns 14.0 million shares of Equity One (approximately 19%), one of the largest shopping centre REITs in the southern U.S., that trades on the New York Stock Exchange under the ticker symbol EQY. Including its investments in Equity One, the Company has interests in 339 properties totalling approximately 37.0 million square feet of gross leasable area.
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For further information:
Dori J. Segal, President & C.E.O., or
Karen H. Weaver, C.F.O.
First Capital Realty Inc.
King Liberty Village
85 Hanna Ave., Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114
Fax: (416) 941-1655