RioCan Real Estate Investment Trust (RioCan) announced it will issue $700 million in senior unsecured debentures, divided into two series. The offering includes $500 million in Series AL debentures with a 4.623% interest rate, maturing on October 3, 2031, and $200 million in Series AM debentures with a 4.004% interest rate, maturing on March 1, 2028.
The proceeds will be used to repay existing debt, including the redemption of $300 million in 6.488% Series AI debentures, with any remaining funds allocated for general purposes.
The debentures will be offered through a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, Scotia Capital, BMO Capital Markets, and Desjardins Securities. The transaction is expected to close on October 3, 2024, subject to customary conditions, including a BBB rating from DBRS Morningstar.
The offering will be made on a private placement basis across Canadian provinces under RioCan’s existing trust indenture. The debentures are not registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the U.S. without proper registration or exemption.
About RioCan
RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at June 30, 2024, our portfolio is comprised of 187 properties with an aggregate net leasable area of approximately 33 million square feet (at RioCan’s interest).
