Plazacorp Announces $27.7 Million Bought Deal Public Offering of Common Shares
September 07 2011 - 3:44PM
Marketwired Canada
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Plazacorp Retail Properties Ltd. ("Plazacorp" or the "Company") (TSX
VENTURE:PLZ) is pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by RBC Capital Markets, under which the syndicate
will purchase on a bought-deal basis and subject to regulatory approval,
6,600,000 common shares of Plazacorp issued from treasury at a price of $4.20
per share. The gross proceeds from the offering are $27,720,000.
Plazacorp has granted the Underwriters an over-allotment option (the
"Over-Allotment Option"), exercisable in whole or in part up to 30 days after
Closing, to purchase up to an additional 990,000 common shares to cover
over-allotments, if any. Any common shares issued subject to the Over-Allotment
Option will be issued by Plazacorp from treasury.
Plazacorp will, within the next few days, file with the securities commissions
and other similar regulatory authorities in each of the provinces of Canada, a
preliminary short form prospectus relating to the issuance of the shares.
Closing of the offering is expected to take place on or about September 27,
2011.
Plazacorp intends to use the net proceeds from the offering as follows:
i. to repay near-term indebtedness, comprising of $6.9 million outstanding
on the Company's Series III Mortgage Bonds which mature on September
30, 2011, $1.5 million of Promissory Notes outstanding to related
parties and between $6 and $8 million outstanding on the Company's
operating line of credit;
ii. to fund the repayment of the $3 million outstanding on the Company's
Series IV Mortgage Bonds which mature on June 30, 2012;
iii. to fund between $8 and $9 million of equity for the Company's future
development and re-development activities, with such amounts expected
to be deployed during the 12 to 18 months following the closing of the
offering; and
iv. the remainder, if any, for general corporate purposes.
"We are pleased to be completing our first public equity raise after 12 years of
successfully raising equity via private placements", commented Michael Zakuta,
President and CEO of Plazacorp. "In addition to de-levering the company to
approximately 54% debt-to-gross book value (or approximately 48% assuming the
well-in-the-money convertible debentures are excluded), a portion of the
proceeds from this offering will be used to fund various projects in our
development pipeline, which has served as the primary source of accretive growth
for Plazacorp since the company's inception. Earl Brewer (Chairman of
Plazacorp's Board of Directors) and I continue to be fully committed to
Plazacorp as we will continue to hold 31% (27% on a fully-diluted basis) of the
outstanding shares after this Offering. Furthermore, we believe that this public
offering will serve to enhance liquidity in the Company's shares, which we
believe will be beneficial to all shareholders."
This press release shall not constitute an offer to sell, or the solicitation of
an offer to buy, any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities being offered have not
been and will not be registered under the U.S. Securities Act of 1933 as amended
and may not be offered or sold in the United States absent registration or
pursuant to applicable exemption from registration.
ABOUT PLAZACORP
Plazacorp was incorporated on February 2, 1999 and commenced trading on the TSX
Venture Exchange on July 30, 1999. Headquartered in Fredericton, New Brunswick,
Plazacorp acquires, develops and redevelops unenclosed and enclosed retail real
estate throughout Atlantic Canada, Quebec and Ontario, which are predominantly
occupied by national tenants (approximately 90% of the total). The Company's
portfolio at June 30, 2011 includes interests in 112 properties totaling over
5.1 million square feet and additional lands held for development. These include
properties directly held by Plazacorp, its subsidiaries and through joint
ventures. Plazacorp's growth has been primarily generated through the
development or redevelopment of retail properties. Plazacorp currently owns
interests in nine projects under development and four land assemblies in
progress which, upon completion, are expected to add an additional 591,000
square feet (at the Company's ownership percentage) and are expected to be
accretive to the Company's earnings. Plazacorp has a proven history of dividend
growth, having increased its common share dividend nine times over the past nine
years, representing a compounded annual growth rate of approximately 13% over
this period.
Plazacorp intends to focus its investments on retail real estate in Canada and
expects that unenclosed single tenant and multi tenant retail centres in
primary, secondary or tertiary markets in Central and Eastern Canada will
constitute the majority of its acquisition and development activity over the
near to medium term. Subject to appropriate regulatory, board and shareholder
approvals, as applicable, the Company is considering the possibility of
converting from a mutual fund corporation to a real estate investment trust
(REIT) structure and pursuing a listing on the TSX.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
All statements in this press release that do not relate to historical facts
constitute forward-looking statements. These statements represent Plazacorp's
intentions, plans, expectations and beliefs and are subject to certain risks and
uncertainties that could result in actual results differing materially from
these forward-looking statements. These risks and uncertainties are more fully
described in regulatory filings that can be obtained on SEDAR at www.sedar.com.
Plazacorp Retail Properties Ltd. (TSXV:PLZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Plazacorp Retail Properties Ltd. (TSXV:PLZ)
Historical Stock Chart
From Jul 2023 to Jul 2024
