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TORONTO, Jan. 10, 2018 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has agreed to issue $650 million aggregate principal amount of senior unsecured debentures of the Trust in two series. The offering includes (i) $300 million aggregate principal amount of series I senior unsecured debentures that will bear interest at a rate of 3.01 % per annum and will mature on March 21, 2022 and (ii) $350 million aggregate principal amount of series J senior unsecured debentures that will bear interest at a rate of 3.546 % per annum and will mature on January 10, 2025 (collectively, the "Debentures").
The Debentures are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities, CIBC Capital Markets and BMO Capital Markets. Subject to customary closing conditions, the offering is expected to close on January 12, 2018.
The net proceeds of the Debentures being offered will be used by the Trust to repay existing indebtedness, including an intention to redeem in full the $400 million aggregate principal amount of its 3.554% series A senior unsecured debentures due July 5, 2018, and for general business purposes.
The offering is being made under Choice Properties' short form base shelf prospectus dated January 9, 2018. The terms of the offering will be described in a prospectus supplement, dated January 10, 2018, to be filed with Canadian securities regulators in each of the provinces of Canada.
It is a condition of closing of the offering that the Debentures be rated at least "BBB" with a "Positive" 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 Real Estate Investment Trust is an owner, manager and developer of well-located retail and commercial real estate across Canada. Choice Properties' portfolio spans approximately 44 million square feet of gross leasable area and consists of 547 properties primarily focused on supermarket and drug store anchored shopping centres and stand-alone supermarkets and drug stores. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through accretive acquisitions, strategic development and active property management. Choice Properties' principal tenant and largest Unitholder is Loblaw Companies Limited, Canada's largest retailer. Choice Properties' strong alliance with Loblaw positions it well for future growth. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in the MD&A section of Choice Properties' Third Quarter 2017 Report to Unitholders. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.
SOURCE Choice Properties Real Estate Investment Trust
For further information: Kim Lee, Vice President, Investor Relations and Business Intelligence, Choice Properties Real Estate Investment Trust, t (416) 324-7899, e [email protected]