RioCan Real Estate Investment Trust (?RioCan?) has agreed to issue $300 million principal amount of Series AI senior unsecured debentures (the ?Debentures?). The Debentures will be sold at par, carry a coupon of 6.488% per annum and mature on September 29, 2026. RioCan will have the option to repay the Debentures at par, in whole or in part, on or after September 29, 2024.
The net proceeds of this offering will be used to repay existing indebtedness at or prior to maturity. The balance of the net proceeds, if any, will be used for general business purposes. The Debentures are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, CIBC Capital Markets, TD Securities, BMO Capital Markets, and Scotia Capital Inc. Subject to customary closing conditions, the offering is expected to close on September 29, 2023.
It is a condition of closing that DBRS Morningstar assign a rating of at least BBB with a stable trend and S&P Global Ratings assign a rating of at least BBB for the Debentures. The offering is being made on a private placement basis in each of the provinces of Canada, and the Debentures will be issued pursuant to RioCan?s trust indenture dated March 8, 2005, as supplemented. The Debentures will rank equally with all other senior unsecured indebtedness of the Trust.
The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.