TORONTO, September 23, 2024 – RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) has announced its plan to issue $700 million in senior unsecured debentures, divided into two series. This strategic move is set to bolster the Trust’s financial stability and support its ongoing business activities.
Details of the Offering
The offering includes:
$500 million of Series AL senior unsecured debentures, bearing an interest rate of 4.623% per annum, maturing on October 3, 2031.
$200 million of Series AM senior unsecured debentures, with an interest rate of 4.004% per annum, maturing on March 1, 2028.
The net proceeds from this issuance will primarily be used to repay existing debt, including the redemption of all $300 million Series AI senior unsecured debentures with a 6.488% interest rate at par. Any remaining proceeds will be allocated to general business purposes.
Offering Structure and Conditions
The debentures are being offered through a syndicate of agents led by TD Securities, CIBC Capital Markets, RBC Capital Markets, Scotia Capital, BMO Capital Markets, and Desjardins Securities. The transaction is expected to close on October 3, 2024, subject to customary closing conditions, including the assignment of a minimum BBB rating with a stable trend by Morningstar DBRS.
This offering will be conducted on a private placement basis in Canadian provinces, following RioCan’s trust indenture dated March 8, 2005. The debentures will rank equally with all other senior unsecured debt of the Trust.
U.S. Distribution Restrictions
Please note that these debentures have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without proper registration or an exemption from registration requirements. This announcement does not constitute an offer to sell or a solicitation to buy these securities in jurisdictions where such an offer would be unlawful.
About RioCan
RioCan is one of Canada’s largest real estate investment trusts, focusing on retail and mixed-use properties situated in high-density, transit-oriented areas. As of June 30, 2024, RioCan’s portfolio includes 187 properties with a total net leasable area of approximately 33 million square feet.
Forward-Looking Information
This release contains forward-looking statements that reflect RioCan’s current expectations and assumptions about future events. Such statements are subject to various risks and uncertainties and should not be relied upon as assurances of future performance. RioCan undertakes no obligation to update or revise these forward-looking statements, except as required by law.
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