FOR IMMEDIATE RELEASE - NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Primaris Retail REIT Announces Filing of Base Shelf Prospectus and Completion of Redemption of Outstanding 5.85% Convertible Debentures
August 21, 2012- Primaris Retail Real Estate Investment Trust
("Primaris") (TSX: PMZ.UN) announced today that it
has filed and received a receipt for a preliminary short-form
base shelf prospectus with the securities regulatory
authorities in each of the provinces and territories of
Canada. Once a final receipt for the final short form base
prospectus has been obtained, this will enable Primaris,
subject to compliance with securities regulatory
requirements, to offer for sale and issue trust units,
subscription receipts, warrants and debt securities,
including unsecured debentures and convertible debentures
having an offer price up to $900 million in the aggregate at
any time during the 25 month period that the final short
form
base shelf prospectus, including any amendments thereto,
remains effective. The securities may be offered separately
or together, in amounts, at prices and on
terms to be determined based on market conditions at the time
of sale and set
forth in an accompanying shelf prospectus supplement.
Primaris further announces that it has completed the
previously announced redemption of the outstanding 5.85%
Convertible Unsecured Subordinated Debentures (PMZ.DB.A) on
August 17, 2012. Since the redemption notice was issued on
July 18, 2012, $84.02 million of debentures converted into
3,725,846 units. The redemption was then completed for a
total payment of $9.48 million on account of principal and
accrued interest.
After giving effect to this redemption and other debenture
conversions that have taken place since June 30, 2012,
Primaris has a pro forma Debt to Total Assets ratio at June
30, 2012 of 40.7% as compared to the reported ratio of 43.5%.
Similarly, Primaris has a pro forma EBITDA Interest Coverage
Ratio for the three month period ended June 30, 2012 of 2.7
times coverage as compared to the reported ratio of 2.5 times
coverage, after giving effect to the redemption and
conversions as though they had occurred on March 31, 2012.
EBITDA is not a
measure defined under IFRS and may not be comparable to
measures presented by other issuers. For a discussion of
EBITDA, including a reconciliation of EBITDA to net income,
please see Primaris MD&A for the 3 and 6 month periods ended
June
30, 2012.
Primaris Retail REIT owns 33 income-producing properties
comprising approximately 13.7 million square feet located in
Canada. Primaris Retail REIT is a TSX listed real estate
investment trust. As of July 31, 2012, Primaris had
91,133,589 units outstanding (including 2,122,261
exchangeable units for which units have yet to be issued).
For more information, please contact
Primaris Retail REIT John Morrison
President and Chief Executive Officer
(416) 642-7860 or
Primaris Retail REIT
Louis M. Forbes
Executive Vice President and Chief Financial Officer
(416) 642-7810
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