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BRIEF-Choice Properties And Canadian Real Estate Combine In $6 Bln deal

Published 2018-02-15, 06:29 a/m
BRIEF-Choice Properties And Canadian Real Estate Combine In $6 Bln deal
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Feb 15 (Reuters) - Choice Properties Real Estate Investment Trust CHP_u.TO :

* CHOICE PROPERTIES AND CANADIAN REAL ESTATE INVESTMENT TRUST COMBINE TO FORM CANADA'S LARGEST REIT IN A $6.0 BILLION TRANSACTION

* CHOICE PROPERTIES REIT- CO TO ACQUIRE ALL OF CREIT'S ASSETS AND ASSUME ALL OF ITS LIABILITIES, INCLUDING LONG-TERM DEBT AND ALL RESIDUAL LIABILITIES

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - TOTAL CONSIDERATION WILL CONSIST OF APPROXIMATELY 58% IN CHOICE PROPERTIES UNITS AND 42% IN CASH

* CHOICE PROPERTIES REIT- CREIT WILL REDEEM ALL OUTSTANDING UNITS FOR $22.50 IN CASH & 2.4904 CHOICE PROPERTIES UNITS PER CREIT UNIT, ON FULLY PRORATED BASIS

* CHOICE PROPERTIES REIT- CREIT UNITHOLDERS TO CHOOSE WHETHER TO RECEIVE $53.75 IN CASH/ 4.2835 CHOICE PROPERTIES UNITS FOR EACH CREIT UNIT HELD

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - MAXIMUM AMOUNT OF CASH TO BE PAID BY CHOICE PROPERTIES WILL BE APPROXIMATELY $1.65 BILLION

* CHOICE PROPERTIES REIT- AS PART OF DEAL ABOUT 183 MILLION UNITS WILL BE ISSUED, BASED ON FULLY DILUTED NUMBER OF CREIT UNITS OUTSTANDING

* CHOICE PROPERTIES REIT- DEAL TO PROVIDE TAX-DEFERRED ROLLOVER FOR CANADIAN RESIDENT CREIT UNITHOLDERS WHO RECEIVE CO'S UNITS IN RESPECT OF CREIT UNITS

* CHOICE PROPERTIES REIT- CO WILL FINANCE CASH PORTION OF DEAL WITH COMMITTED CREDIT FACILITIES FULLY UNDERWRITTEN BY TD SECURITIES TOTALING $3.6 BILLION

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - CHOICE PROPERTIES HAS ALSO ARRANGED A NEW $1.5 BILLION COMMITTED REVOLVING CREDIT FACILITY

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - FOLLOWING DEAL , LOBLAW AND GWL WILL OWN ABOUT 62% AND 4% OF PROFORMA ENTITY, RESPECTIVELY

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - UPON CLOSING, JOHN MORRISON WILL STEP DOWN AS PRESIDENT & CHIEF EXECUTIVE OFFICER OF CHOICE PROPERTIES

* CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST - JOHN MORRISON WILL SERVE AS NON-EXECUTIVE VICE CHAIRMAN OF COMBINED REIT

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