NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
TORONTO, Feb. 12, 2021 (GLOBE NEWSWIRE) — Allied Properties Real Estate Investment Trust (TSX:AP.UN)(âAlliedâ) announced today that it has closed its previously announced offering of $600 million aggregate principal amount of series H senior unsecured debentures (the âDebenturesâ). The Debentures bear interest at a rate of 1.726% per annum and mature on February 12, 2026. The Debentures were offered on an agency basis by a syndicate of agents led by Scotia Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. DBRS Limited and Moodyâs Investors Service, Inc. provided Allied with credit ratings of âBBBâ with a âStableâ trend and âBaa2â, respectively, relating to the Debentures. The Debentures were sold pursuant to a prospectus supplement dated February 5, 2021 to Alliedâs base shelf prospectus dated November 19, 2019.
The Debentures are Alliedâs inaugural Green Bond issuance under its previously announced Green Financing Framework, which is available on Alliedâs website at https://www.alliedreit.com/company/esg/.
Allied intends to allocate the net proceeds of the offering to fund the financing and/or refinancing of eligible green projects (âEligible Green Projectsâ) as described in the Allied Green Financing Framework (the âFrameworkâ). Prior to allocation of the net proceeds of the offering to Eligible Green Projects, Allied intends to use the net proceeds of the offering (a) to redeem in full its $150 million aggregate principal amount of 3.934% series B senior unsecured debentures due November 14, 2022 (the âSeries B Debenturesâ), (b) to repay a first mortgage in the amount of $150 million secured by 700 de la GauchetiÃ¨re West, MontrÃ©al, (c) to repay certain amounts drawn on Alliedâs unsecured credit facility, and (d) for general trust purposes. The net proceeds will ultimately be allocated to Eligible Green Projects in accordance with the Framework.
Although Allied intends to allocate an amount equal to the net proceeds of the offering as described herein, it will not be an Event of Default under the Series H Indenture if Allied fails to do so.
The redemption of the Series B Debentures is expected to be completed on February 16, 2021 (the âRedemption Dateâ) pursuant to a notice of redemption distributed to holders of the Series B Debentures dated February 5, 2021. The Series B Debentures will be redeemed effective on the Redemption Date at a price equal to $1,051.82 per $1,000 principal amount of Series B Debentures plus accrued and unpaid interest to the Redemption Date totaling $1,519,709.59. The aggregate redemption price payable by Allied on the Redemption Date is approximately $159,292,710.
Allied is a leading owner, manager and developer of (i) distinctive urban workspace in Canadaâs major cities and (ii) network-dense urban data centres in Toronto that form Canadaâs hub for global connectivity. Alliedâs business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.
This press release may contain forward-looking statements with respect to Allied including its intended use and allocation of the net proceeds of the offering. These statements generally can be identified by use of forward-looking words such as âmayâ, âwillâ, âexpectâ, âestimateâ, âanticipateâ, âintendsâ, âbelieveâ or âcontinueâ or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including the effect of the global pandemic and consequent economic disruption. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under âRisk Factorsâ in Alliedâs Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Alliedâs behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.
The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
For more information, please contact:
Michael R. Emory, President & CEO
Cecilia C. Williams, Executive Vice President & CFO