Choice Properties REIT Issues $500M Series U Debentures

Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) announced today that it has agreed to issue, on a private placement basis in certain provinces of Canada (the “Offering”), $500 million aggregate principal amount of series U senior unsecured debentures of the Trust that will bear interest at a rate of 5.030% per annum and will mature on February 28, 2031 (the “Debentures”).

Offering of Debentures

The Debentures will be sold at a price of $99.996 per $100 principal amount, with a yield of 5.032% per annum, and are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, and CIBC Capital Markets. Subject to customary closing conditions, the Offering is expected to close on May 23, 2024. The Trust intends to use the net proceeds of the Offering, together with other available funds, to repay upon maturity its outstanding $550 million aggregate principal amount of 3.556% series K senior unsecured debentures due September 9, 2024.

It is a condition of closing of the Offering that the Debentures be rated at least “BBB” (high) with a “stable” trend by DBRS Limited and at least “BBB” by Standard and Poor’s Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

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 Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties.

We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

Source link

Newsletter Updates

Enter your email address below and subscribe to our newsletter