Crombie REIT Completes Private Placement in Connection with Sobeys/Safeway Transaction

Crombie Real Estate Investment Trust completed a bought deal private placement offering of $100 million principal amount Series B Notes (senior unsecured). The Series B Notes carry a coupon rate of 3.962 per cent and were priced at a premium with an effective yield of 3.90 per cent and will mature on June 1, 2021. The private placement offering was underwritten by a syndicate of dealers co-led by Scotia Capital Inc., CIBC World Markets Inc., and BMO Nesbitt Burns Inc., and included RBC Dominion Securities Inc., TD Securities Inc., and National Bank Financial Inc. The deal follows Crombie's sale leaseback transaction with Sobeys West Inc. of a portfolio of real estate comprising approximately 70 Canada Safeway locations for an aggregate purchase price of approximately $990 million, which closed in November 2013.

Stewart McKelvey acted as counsel to Crombie with a team of Jim Dickson, Gavin Stuttard, Andrew Burke, Trevor MacDonald and Adam Bata. Davies Ward Phillips & Vineberg LLP acted as counsel to the underwriters with a team including Mindy Gilbert and Gillian Muirhead (corporate and securities) and Sarah Powell (environmental).
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