Public Storage receives approval for rights offering
2007-09-10 17:58 MT - News Release
Mr. David Singelyn reports
PUBLIC STORAGE CANADIAN PROPERTIES ANNOUNCES DETAILS OF RIGHTS OFFERING
Canadian Mini-Warehouse Properties Co., the general partner of Public Storage Canadian Properties, has received all necessary approvals from Canadian securities regulators and the Toronto Stock Exchange for its previously announced rights offering.
The rights offering will provide the existing holders of the units of the partnership that are qualifying persons (as defined below) with the right to purchase additional units in the partnership. Assuming all the rights are exercised, the rights offering is expected to raise net proceeds of approximately $36.4-million, which the partnership intends to use to reduce amounts outstanding under the partnership's credit facility and to finance the acquisition and development of additional properties.
Unitholders of record as at the close of business on Sept. 18, 2007, will receive one right for each unit held. Rights will be evidenced by fully transferable certificates which will be issued in registered form. A rights offering circular will be mailed along with the rights certificates to registered unitholders on or around Sept. 20, 2007.
The partnership's limited partnership agreement restricts the ownership of units to persons who are qualifying persons defined as any person that:
1. Is not a non-resident for the purposes of the Income Tax Act (Canada);
2. Is not a person, an interest in which would be a tax shelter investment as defined in the tax act;
3. If a partnership, is a Canadian partnership under the tax act.
A holder of rights that is a qualifying person is entitled to subscribe for units at a price of $20.25 per unit for every four rights held at any time up to the expiry of the rights at 4 p.m. (Toronto time) on Oct. 12, 2007. Rightsholders may only subscribe for whole units. No fractional units will be issued.
Unitholders that exercise all of the rights as evidenced by their rights certificates may also subscribe for additional units that may be available as a result of unexercised rights. Unitholders should refer to their rights certificate and the rights offering circular for additional information with respect to subscribing for additional rights.
Unitholders may exercise their rights by forwarding the completed rights certificate along with the applicable funds to CIBC Mellon Trust Co. CIBC Mellon must receive the rights certificates and the required funds by 4 p.m. on Oct. 12, 2007.
The rights will be listed and posted for trading on the TSX under the symbol PUB.RT and unitholders who do not wish to exercise their rights may sell them on the TSX.
Unitholders requiring additional information with respect to the rights offering may refer to the copy of the circular which has been filed on SEDAR.
