Calloway Real Estate Investment Trust announced that it has agreed to issue $160 million principal amount of Series N senior unsecured debentures on a bought deal basis. These debentures will carry a coupon rate of 3.556% and will mature on February 6, 2025. The offering is being underwritten by a syndicate co-led and bookrun by BMO Capital Markets and RBC Capital Markets and co-led by CIBC.

The offering is expected to close on or about February 6, 2015. DBRS Limited has provided Calloway with a provisional credit rating of BBB with a stable trend relating to the debentures. The net proceeds to Calloway from the sale of the Series N Debentures will be used to repay existing indebtedness, including the redemption of its $150 million 5.37% Series B senior unsecured debentures due October 12, 2016.

This offering is being made by way of a Prospectus Supplement to Calloway's existing $2 billion base shelf short form prospectus filed with Canadian securities regulatory authorities. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.