Plaza Retail REIT announces redemption of 7.00% convertible unsecured subordinated debentures

FREDERICTON, Nov. 28, 2016 /CNW/ - Plaza Retail REIT ("Plaza") (TSX: PLZ.UN) today announced that it will issue a redemption notice on November 30, 2016 to the holders of its 7.00% convertible unsecured subordinated debentures due December 31, 2017 (the "Series C Debentures"), providing for the redemption in full of all the currently outstanding Series C Debentures.  The Series C Debentures will be redeemed on January 9, 2017 (the "Redemption Date"), in accordance with their terms, for a redemption price equal to the principal amount outstanding plus accrued and unpaid interest thereon to but excluding the Redemption Date.

In accordance with the terms of the trust indenture governing the Series C Debentures, debenture holders will have the right until close of business (Eastern Standard Time) on the last business day prior to the Redemption Date (the "Conversion Deadline") to convert their Series C Debentures into Plaza units ("Units") and cash, at a rate of 190 Units and $112.76 in cash for each $1,000 principal amount of Series C Debentures.  With a break-even stock price on conversion of $4.67 per Unit, so long as Plaza's Units trade above $4.67 per Unit, Plaza anticipates that debenture holders will convert their Series C Debentures by the Conversion Deadline. 

Plaza recently announced its 14^th consecutive annual distribution increase to $0.27 per unit for 2017.  Based on a Unit price on November 25, 2016 of $5.04, this represents a 5.36% annual distribution yield. 

ABOUT PLAZA
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada.  Plaza's current portfolio includes interests in 297 properties totaling approximately 7.6 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 91% national tenants. 

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
All statements in this press release that do not relate to historical facts constitute forward-looking statements.  Forward-looking statements used in this press release may contain words such as "may", "will", "should", "believe", "expect", "plan", "anticipate", "intend", "estimate", "predict", "potential", "continue", "future", or the negative of these terms or other similar expressions.  Forward-looking statements in this press release, include, without limitation, statements regarding completion of the redemption of the Series C Debentures. These statements represent Plaza'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. Plaza undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.

SOURCE Plaza Retail REIT