Retirement Residences Real Estate Investment Trust Announces Completion Of The Purchase of Convertible Debentures
MISSISSAUGA, ONTARIO -- Retirement Residences Real Estate Investment Trust (“Retirement REIT”) (TSX: RRR.UN)(TSX: RRR.DB.B)(TSX: RRR.DB.C) announced today that $13,286,000 of the principal amount of its 8.25% convertible debentures (or approximately 8.5% of the total outstanding 8.25% debentures) and $89,837,000 of the principal amount of its 5.50% convertible debentures (or approximately 45.0% of the total outstanding 5.50% debentures) have been tendered to the offer made by Retirement REIT. Debenture holders who tendered to the offer will receive a payment equal to 101% of the principal amount plus accrued and unpaid interest. Retirement REIT has instructed the depositary to take up and accept for payment the convertible debentures tendered to the offer.
Debenture holders who did not tender to the offer will continue to receive interest and principal payments as Retirement REIT intends to defease the remaining convertible debentures by depositing, in a new trust for the benefit of holders of debentures, cash or direct obligations of the Government of Canada with CIBC Mellon Trust Company, as trustee, in an amount sufficient to pay, satisfy and discharge the entire amount of principal and interest to maturity for each series of convertible debentures. Defeasance is expected to occur on or before Monday, March 12, 2007, and from that date onwards all payments of principal and interest will be made from the new trust. The convertible debentures will thereafter be deemed to be satisfied and discharged and the provisions of the trust indenture shall no longer be binding on Retirement REIT, except for certain provisions dealing with the payment of principal and interest, redemption, conversion and enforcement by the trustee.
Following defeasance, the convertible debentures will be delisted from the Toronto Stock Exchange.
About Retirement REIT
Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 224 retirement and long term care facilities, including 40 facilities in select United States markets, and provides management services to 8 homes for other parties, with an aggregate resident capacity in excess of 26,500. Retirement REIT also provides nursing placement and in-home health care through its Central Health Services unit. For further information, see the Retirement REIT website at www.retirementreit.com.
Certain statements contained in this news release may include forward-looking information with respect to Retirement REIT’s operations and future results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements. Further information on uncertainties, risks and other matters can be found in the disclosure documents filed by Retirement REIT with the securities regulatory authorities, available at www.sedar.com.
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