Jonathan Gitlin, CEO, RioCan – Source – LinkedIn
  • RioCan Real Estate Investment Trust (REI.UN) has completed its offering of $250 million Series AF senior unsecured debentures
  • The debentures carry an annual coupon rate of 4.628 per cent with a seven-year term, maturing on May 1, 2029
  • The net proceeds will be used by the RioCan to repay certain debts
  • RioCan is a real estate investment trust
  • RioCan Real Estate Investment Trust (REI.UN) is up 0.44 per cent on the day, trading at $24.88 per share at 11:05 AM ET

RioCan Real Estate Investment Trust (REI.UN) has closed its offering of $250 million principal amount of Series AF senior unsecured debentures.

Inclusive of the benefit of bond-forward hedges, the all-in or total interest rate of the debentures is 3.829 per cent, which is favourable compared to current market rates.

The debentures carry an annual coupon rate of 4.628 per cent 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 Standard & Poor’s Rating Services.

The debentures have been issued in line with RioCan’s trust indenture dated March 8, 2005, as supplemented. The debentures rank equally with all other senior unsecured indebtedness of the Trust.

RioCan is a real estate investment trust which 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.

RioCan Real Estate Investment Trust (REI.UN) is up 0.44 per cent on the day, trading at $24.88 per share at 11:05 AM ET.

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