RioCan Real Estate Investment Trust completes offering of $300 million Series AH senior unsecured debentures
26 June 2023 - 11:32PM
RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX:
REI.UN) today announced that it has closed its previously announced
offering of the $300 million principal amount of Series AH senior
unsecured debentures (the “Debentures”).
The Debentures carry a coupon of 5.962% per
annum and mature on October 1, 2029. Inclusive of the benefit of
bond forward hedges, the Trust’s all-in rate is 5.284% per annum.
The net proceeds of this offering will be used by the Trust to
repay the amounts owing under certain credit facilities incurred in
the ordinary course. The balance of net proceeds, if any, will be
used for general business purposes.
The Debentures were sold on a private placement
basis in certain provinces of Canada. The offering was made on an
agency basis by a syndicate of agents co-led by TD Securities, BMO
Capital Markets, CIBC Capital Markets, RBC Capital Markets and
Scotia Capital.
The Debentures are rated BBB with a stable trend
by DBRS Morningstar and BBB with a stable outlook to the entity
rating given to RioCan by S&P Global Ratings.
The Debentures have been issued pursuant to
RioCan’s trust indenture dated March 8, 2005, as supplemented. The
Debentures rank equally with all other senior unsecured
indebtedness of the Trust.
The Debentures have not been registered under
the U.S. Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable
exemption from the registration requirements. This News Release
shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About RioCanRioCan is one of
Canada’s largest real estate investment trusts. RioCan owns,
manages and develops retail-focused, increasingly mixed-use
properties located in prime, high-density transit-oriented areas
where Canadians want to shop, live and work. As at March 31, 2023,
our portfolio is comprised of 191 properties with an aggregate net
leasable area of approximately 33.5 million square feet (at
RioCan's interest) including office, residential rental and 11
development properties. To learn more about us, please visit
www.riocan.com.
Forward Looking InformationThis
News Release contains forward-looking information within the
meaning of applicable Canadian securities laws. This information
reflects RioCan’s objectives, our strategies to achieve those
objectives, as well as statements with respect to management’s
beliefs, estimates and intentions concerning anticipated future
events or expectations that are not historical facts.
Forward-looking information generally can be identified by the use
of forward-looking terminology such as “outlook”, “objective”,
“may”, “will”, “would”, “expect”, “intend”, “estimate”,
“anticipate”, “believe”, “should”, “plan”, “continue”, or similar
expressions suggesting future outcomes or events.
Such forward-looking information reflects
management’s current beliefs and is based on information currently
available to management. All forward-looking information in this
News Release is qualified by these cautionary statements.
Forward-looking information is not a guarantee
of future events or performance and, by its nature, is based on
RioCan’s current estimates and assumptions, which are subject to
numerous risks and uncertainties, including those described in the
“Risks and Uncertainties” section in RioCan's MD&A for the
period ended March 31, 2023 and in our most recent Annual
Information Form, which could cause actual events or results to
differ materially from the forward-looking information contained in
this News Release.
Although the forward-looking information
contained in this News Release is based upon what management
believes are reasonable assumptions, there can be no assurance that
actual results will be consistent with this forward-looking
information.
The forward-looking statements contained in this
News Release are made as of the date hereof, and should not be
relied upon as representing RioCan’s views as of any date
subsequent to the date of this News Release. Management undertakes
no obligation, except as required by applicable law, to publicly
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
Contact Information:
RioCan Real Estate Investment Trust
Dennis Blasutti
Chief Financial Officer
(416) 866-3033
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