M&A

23 November, 2009

UPDATE 1-RioCan REIT to raise C$100.9 mln via public offering

* To sell about 5.5 mln units at C$18.35/unit

* Public issue price at 2 pct discount to Monday close

* To use proceeds for improving liquidity, acquisitions

Nov 23 (Reuters) - Canada's RioCan Real Estate Investment Trust (REI_u.TO) said it plans to sell about 5.5 million units at C$18.35 apiece for gross proceeds of C$100.9 million ($94.7 million).

The sale price represents a 2 percent discount to the unit's Monday close of C$18.70 on the Toronto Stock Exchange.

RioCan said it reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and TD Securities Inc for the public issue.

The company also granted the underwriters an option to buy an additional 550,000 units at the same price.

RioCan said it will use the proceeds to provide additional financial flexibility to its liquidity position, to fund development activities and future property acquisitions and for general trust purposes.

The offering is expected to close on or about Dec. 1, the company said in a statement. ($1=1.066 Canadian Dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel) ((koustav.samanta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: koustav.samanta.reuters.com@reuters.net))

Source: http://www.reuters.com