TORONTO, January 21, 2025 – RioCan Real Estate Investment Trust (TSX: REI.UN) has revealed plans to issue a total of $550 million in senior unsecured debentures, divided into two distinct series. The offering, set to close on February 12, 2025, is expected to be led by a syndicate of leading financial institutions, including TD Securities, BMO Capital Markets, CIBC Capital Markets, Desjardins Securities Inc., RBC Capital Markets, and Scotia Capital.
The offering consists of:
Series AN: $250 million in senior unsecured debentures, carrying interest at Daily Compounded CORRA plus 0.85% per annum, payable quarterly. These debentures will mature on March 1, 2027.
Series AO: $300 million in senior unsecured debentures, priced at $99.997 per $100 principal amount, offering an annual coupon of 4.671%. These debentures will mature on March 1, 2032.
The all-in weighted average interest rate for the debenture offering, assuming a Daily Compounded CORRA rate of 3.30%, is 4.43% per annum. The weighted average maturity term is 4.8 years.
The net proceeds from the debenture issuance will be used primarily to repay existing debt obligations, with any remaining funds allocated for general corporate purposes.
Rating Requirement
Completion of the offering is contingent upon the assignment of a minimum BBB rating with a stable trend by Morningstar DBRS.
The debentures will be offered exclusively in Canada through a private placement under RioCan’s trust indenture, dated March 8, 2005, as amended. The securities will rank equally with all other senior unsecured debt of the Trust.
Important Disclaimer
This offering is restricted from distribution in the United States and will not be registered under the U.S. Securities Act of 1933. Consequently, the debentures cannot be offered or sold in the U.S. unless registered or exempt from registration.
About RioCan
RioCan is one of Canada’s largest real estate investment trusts, focused on owning, managing, and developing retail and mixed-use properties in high-density, transit-oriented areas. As of September 30, 2024, RioCan’s portfolio encompasses 186 properties with a total leasable area of approximately 33 million square feet.
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