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TORONTO, May 21, 2020 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has completed its previously announced issuance, on a private placement basis in certain Provinces of Canada (the "Offering"), of $500 million aggregate principal amount of series P senior unsecured debentures of the Trust bearing interest at a rate of 2.848% per annum and maturing on May 21, 2027 (the "Debentures").
The Trust intends to use the net proceeds of the Offering to (A) repay existing indebtedness, including the previously announced redemption in full of (i) the $100 million aggregate principal amount of its 4.323% series B senior unsecured debentures due January 15, 2021 and (ii) the $250 million aggregate principal amount of its 3.498% series C senior unsecured debentures due February 8, 2021, as well as to repay all or a portion of the balance drawn on the Trust's credit facility and (B) for general business purposes.
DBRS Limited has provided the Debentures with a credit rating of "BBB" with a "Stable" trend and Standard and Poor's Ratings Services has provided the Debentures with a credit rating of "BBB". The Debentures rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.
The Debentures were sold on an agency basis by a syndicate of agents co-led by TD Securities, RBC Capital Markets, CIBC Capital Markets, BMO Capital Markets and Scotiabank. 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 Choice Properties Real Estate Investment Trust
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 724 properties totaling 65.6 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity-based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities. 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, including the intended use of proceeds of the Offering. 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 Choice Properties' 2019 Annual Report, current Annual Information Form and 2020 First Quarter Report. 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