Plaza Retail REIT completes bought deal public offering of $47,250,000 of convertible unsecured subordinated debentures

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

FREDERICTON, Feb. 21, 2018 /CNW/ - Plaza Retail REIT ("Plaza" or the "REIT") (TSX: PLZ.UN) announced today that it has closed its previously announced bought deal public offering (the "Offering") of $47,250,000 aggregate principal amount of 5.10% convertible unsecured subordinated debentures due March 31, 2023 (the "Debentures"), including the exercise of the over-allotment option in full. The underwriting syndicate for the Offering was led by RBC Capital Markets. The Debentures are convertible, at the option of the holder, into trust units of the REIT at $5.65 per trust unit.

As previously announced, Plaza intends to use the net proceeds from the Offering to redeem its 5.75% convertible unsecured subordinated debentures (current outstanding balance of $34.0 million) which mature on December 31, 2018 and which have a par call date of December 31, 2017. Plaza intends to use the remainder of the net proceeds to repay amounts outstanding on the REIT's operating line of credit, to fund the REIT's future and on-going development and re-development activities and for general trust purposes.

ABOUT PLAZA RETAIL REIT

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's portfolio at September 30, 2017 includes interests in 295 properties totaling approximately 7.7 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants.

Forward-looking Information

This press release contains forward-looking statements, which can generally be identified by terms such as "intends", "will", "expects" or other similar expressions or phrases that do not relate to historical facts. Forward looking statements in this press release include those which relate to Plaza's intention to use the net proceeds from the Offering as described. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release, including but not limited to those described in Plaza's Annual Information Form for the year ended December 31, 2016 and Management's Discussion and Analysis for the period ended September 30, 2017, which can both be obtained on SEDAR at www.sedar.com. Forward-looking statements are based on a number of expectations and assumptions, including general and economic market factors. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release.

Visit our website at: www.plaza.ca.

SOURCE Plaza Retail REIT

Michael Zakuta, President and Chief Executive Officer, [phone]; Floriana Cipollone, Chief Financial Officer, [phone]

Related Links

http://plaza.ca