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TORONTO, April 18, 2022 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX:REI) today announced that it has closed its previously announced offering of $250 million principal amount of Series AF senior unsecured debentures (the “Debentures”). Inclusive of the benefit of bond-forward hedges, the all-in interest rate of the Debentures is 3.829%, which is favourable compared to current market rates.
The Debentures carry an annual coupon rate of 4.628% with a seven-year term, maturing on May 1, 2029. 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 Inc.
This issuance provides additional liquidity to RioCan to support its strategy, pursue opportunities and manage potential risks. The net proceeds will be used by the Trust to repay certain debt incurred in the ordinary course, including replenishing its corporate line of credit.
The Debentures are rated BBB with a stable trend by DBRS Limited and BBB with a negative outlook to the entity rating given to RioCan by …