TORONTO, ONTARIO–(Marketwired – March 25, 2015) –
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) announced today that it has reached an agreement to issue to the public on a bought deal basis, subject to regulatory approval, $125 million principal amount of Series Q senior unsecured debentures (the “Additional Debentures”), which is a re-opening of this series of debentures, the original issuance of which was completed in June 2012, and the first re-opening of which was completed in July 2012.
The Additional Debentures are being issued by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Additional Debentures will carry a coupon rate of 3.85% and will mature on June 28, 2019. The Additional Debentures were sold at a price of $107.27 per $100 principal amount plus accrued interest, with an effective yield of 2.05% if held to maturity. An aggregate of $300 million of such debentures will be outstanding after giving effect to this offering.
The net proceeds will be used by RioCan to fund development, for property acquisitions, to repay certain indebtedness and for general trust purposes.
It is a condition of closing that DBRS Limited (“DBRS”) assign a rating of BBB(high) with a stable trend and Standard & Poor’s, a division of the McGraw Hill Companies, Inc. (“S&P”) assign a rating of BBB- for the Debentures.
The offering is being made under RioCan’s base shelf short form prospectus dated July 7, 2014. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The offering is expected to close on or about April 2, 2015.
The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Additional Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Additional Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.
RioCan is Canada’s largest real estate investment trust with a total capitalization of approximately $15.1 billion as at December 31, 2014. It owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 340 retail properties containing more than 79 million square feet, including 48 grocery anchored and new format retail centres containing 13 million square feet in the United States as at December 31, 2014. RioCan’s portfolio also includes 15 properties under development in Canada. For further information, please refer to RioCan’s website at www.riocan.com.
President and Chief Operating Officer