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TORONTO, Sept. 19, 2019 /CNW/ - CT Real Estate Investment
Trust ("CT REIT") (TSX: CRT.UN) and a subsidiary of Canadian Tire
Corporation, Limited ("Canadian Tire", "CTC" or the "Company")
(TSX: CTC) (TSX: CTC.A) announced today that they have closed the
previously announced public offering of 16,846,000 Units of CT REIT
("Units") at a price of $14.25 per
Unit (the "Offering"). The Offering consisted of a secondary
offering of 10,530,000 Units by CTC and a treasury offering of
6,316,000 Units by CT REIT for gross proceeds of approximately
$150 million and $90 million, respectively.
The net proceeds of the secondary offering will be used by CTC
to support the continued investment in its business, including
recently completed acquisitions, and for general corporate
purposes. The net proceeds of the treasury offering will be used by
CT REIT to pay down amounts owing on its credit facility, to fund
its investment program and for general working capital and
corporate purposes. The combined secondary and treasury offering
strengthens CT REIT by increasing its public float, thereby
enhancing the trading liquidity of CT REIT's units which should
qualify for eventual inclusion in certain broader market
indices.
The Offering was made through a syndicate of underwriters led by
CIBC Capital Markets, RBC Capital Markets and BMO Capital Markets
(the "Underwriters"). The Underwriters were granted an
over-allotment option to purchase up to an additional 2,457,000
Units in the aggregate from CT REIT and a subsidiary of CTC on the
same terms and conditions as the Offering, exercisable at any time,
in whole or in part, for a period of 30 days following the closing
of the Offering.
As a result of the Offering, CTC decreased its effective
ownership of CT REIT to approximately 69.4% from approximately
76.1%, such that immediately following the Offering, CTC now owns,
indirectly, 33,989,508 Units, 123,590,976 Class B limited
partnership units of CT REIT Limited Partnership (the
"Partnership") (which are exchangeable on a one-for-one basis for,
and are economically equivalent to, Units and are accompanied by an
equivalent number of special voting units of CT REIT) and all of
the Class C limited partnership units of the Partnership. CTC
intends to remain the majority unitholder of CT REIT over the
long-term.
The first cash distribution which purchasers of the Units under
the Offering will be entitled to receive will be for the month of
September 2019, with an expected
record date of September 30, 2019 and
an expected payment date of October 15,
2019.
CTC and its affiliates may from time to time acquire additional
securities, or dispose of securities, of CT REIT and entities
controlled by CT REIT (whether in connection with property
acquisition transactions or otherwise). In connection with this
news release, an early warning report must be filed by CTC on CT
REIT's SEDAR profile in accordance with applicable securities laws.
A copy of the early warning report will be available for review on
www.sedar.com or a copy can be requested from the persons listed
below under the heading "For More Information".
ABOUT CANADIAN TIRE
Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or
"CTC", is a family of businesses that includes a Retail segment, a
Financial Services division and CT REIT. Our retail business is led
by Canadian Tire, which was founded in 1922 and provides Canadians
with products for life in Canada
across its Living, Playing, Fixing, Automotive and Seasonal &
Gardening divisions. PartSource and Gas+ are key parts of the
Canadian Tire network. The Retail segment also includes Mark's, a
leading source for casual and industrial wear; Pro Hockey Life, a
hockey speciality store catering to elite players; and SportChek,
Hockey Experts, Sports Experts, National Sports, Intersport and
Atmosphere, which offers the best active wear brands. The nearly
1,700 retail and gasoline outlets are supported and strengthened by
our Financial Services division and the tens of thousands of people
employed across Canada and around
the world by the Company and its local dealers, franchisees and
petroleum retailers. In addition, Canadian Tire owns and operates
Helly Hansen, a leading global brand in sportswear and workwear
based in Oslo, Norway. For more
information, visit Corp.CanadianTire.ca.
ABOUT CT REIT
CT Real Estate Investment Trust (TSX:CRT.UN) or "CT REIT" is an
unincorporated, closed-end real estate investment trust formed to
own income producing commercial properties primarily located in
Canada. Its portfolio comprises
over 325 properties totaling approximately 27 million square feet
of GLA, consisting primarily of retail properties located across
Canada. Canadian Tire Corporation,
Limited is CT REIT's most significant tenant. For more information,
visit www.ctreit.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects CT
REIT's and CTC's current expectations regarding future events,
including but not limited to the use of proceeds of the Offering,
the trading liquidity of the units, CTC's future intentions with
respect to its CT REIT holdings and the expected record and payment
dates for the first distribution. Forward-looking information is
based on a number of assumptions and is subject to a number of
risks and uncertainties, many of which are beyond CT REIT's and
CTC's control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include,
but are not limited to, the factors discussed under "Risk Factors"
in CT REIT's short form base shelf prospectus dated April 23, 2019, and the related prospectus
supplement filed qualifying the distribution of the Units, each as
amended or supplemented, and the documents incorporated by
reference therein, all of which are available on CT REIT's website
at www.ctreit.com and on SEDAR at www.sedar.com. CT REIT and CTC do
not undertake any obligations to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable laws.
FOR MORE INFORMATION
Media: Jane Shaw, 416-480-8581,
jane.shaw@cantire.com
Investors: Marina Davies,
416-544-6134, marina.davies@cantire.com
SOURCE CANADIAN TIRE CORPORATION, LIMITED