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TORONTO, June 1, 2015 /CNW/ - CT Real Estate Investment Trust (CT REIT), (TSX: CRT.UN) announced today that it has agreed to issue, on an agency basis, $350 million aggregate principal amount of senior unsecured debentures (the "Debentures") of CT REIT in two series (the "Debenture Offering"). The Debenture Offering is being made under CT REIT's short form base shelf prospectus dated March 5, 2015. The terms of the Debenture Offering will be described in a prospectus supplement, dated June 1, 2015, to be filed with Canadian securities regulators in each of the provinces and territories of Canada. The Debenture Offering is expected to close on or about June 9, 2015.
The Debenture Offering includes $150 million principal amount of series A senior unsecured debentures with a 7-year term and a coupon of 2.852% per annum and $200 million principal amount of series B senior unsecured debentures with a 10-year term and a coupon of 3.527% per annum. It is expected that the Debentures will be rated "BBB+" by Standard and Poor's Ratings Service and "BBB(high)" by DBRS Limited. The Debentures will be direct senior unsecured obligations of CT REIT.
CT REIT intends to use the proceeds of the Debenture Offering to indirectly redeem the Series 1 Class C LP Units held by Canadian Tire Corporation, Limited, to pay down certain amounts outstanding under its credit facility, and to retain the balance of the proceeds for general business purposes.
The Debenture Offering is led by RBC Capital Markets and CIBC.
The Debentures 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 CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its portfolio is comprised of more than 275 properties totaling over 20 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant. For more information, visit ctreit.com.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects CT REIT's 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 CT REIT's 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 under "Risk Factors" in CT REIT's 2014 Annual Information Form and its MD&A for the period ended March 31, 2014, which are both available on CT REIT's website at www.ctreit.com and on SEDAR at www.sedar.com. CT REIT 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.
SOURCE CT Real Estate Investment Trust (CT REIT)
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