Calloway REIT Completes $125 Million Debenture Offering

On May 2, 2008, Calloway Real Estate Investment Trust completed a public offering of $125 million principal amount of 6.65 per cent convertible unsecured subordinated debentures due June 30, 2013. The offering was underwritten by a syndicate led by CIBC World Markets Inc. and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., and Raymond James Ltd. The net proceeds of the offering will be used by the REIT to pay down amounts owing under its non-revolving senior interim credit facility, with the balance to be used to pay down amounts owing under its revolving acquisition and operating facilities.

The REIT was represented by David Calnan and Joe Brennan (securities), and Matt Clark (tax) of Shea Nerland Calnan LLP.The underwriters were represented by Graham Gow, Andrew Parker and David Randell (securities), and Jim Morand (tax) of McCarthy T├ętrault LLP.

Lawyer(s)

James G. Morand David M. Calnan Matt Clark Joe D. Brennan Andrew C. Parker David Randell Graham P.C. Gow

Firm(s)

Shea Nerland LLP McCarthy Tétrault LLP