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Canada : RioCan REIT Announces Public Offering of $300 Million of Series AA Senior Unsecured Debentures.

RioCan Real Estate Investment Trust (RioCan) announced today that it has reached an agreement to issue to the public $300 million principal amount of Series AA senior unsecured debentures (the Debentures).

The Debentures are being offered on a best efforts agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Debentures will carry a coupon rate of 3.209% and will mature on September 29, 2023. The Debentures were sold at a price of $999.95 per $1,000 principal amount with an effective yield of 3.209% if held to maturity.

The net proceeds will be used by RioCan to fund development, for property acquisitions, and to repay certain indebtedness including indebtedness incurred in the ordinary course under RioCans operating line of credit and the balance 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 with no negative change in outlook to the entity rating given to RioCan.

The offering is being made under RioCan's base shelf short form prospectus dated August 10, 2016. 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 January 31, 2018.

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Publication:Mena Report
Date:Feb 3, 2018
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