Cadillac Fairview Finance Trust

May 09, 2011 12:00 ET

Cadillac Fairview Finance Trust Announces Issue of C$600,000,000 of 3.64% Series C Debentures

TORONTO, ONTARIO--(Marketwire - May 9, 2011) - Cadillac Fairview Finance Trust (the "Trust") today announced that it has issued, by way of private placement, C$600,000,000 aggregate principal amount of 3.64% Series C Debentures due May 9, 2018 (the "Debentures") for total gross proceeds of C$599,928,000 (the "Offering"). The Debentures were offered for sale on a best efforts basis by a syndicate of agents co-led by TD Securities Inc. and RBC Dominion Securities Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc. and Scotia Capital Inc. The Trust will lend the proceeds of the Offering to one or more of the entities comprising the real estate portfolio of Ontario Teachers' Pension Plan Board ("OTPP"), referred to as the Cadillac Fairview Group.

The Debentures are direct, unsecured obligations of the Trust and will rank pari passu with all present and future unsecured indebtedness of the Trust. The Debentures are unconditionally and irrevocably guaranteed by OTPP as to payment of principal, premium (if any), interest and any make-whole amount payable. The Debentures have been assigned a rating of "AAA" by each of DBRS Limited and Standard & Poor's Ratings Service.

The Debentures will bear interest at the rate of 3.64% per annum and will mature on May 9, 2018. Interest will be paid in equal semi-annual installments in arrears on the 9th day of May and November of each year beginning on November 9, 2011. The Debentures may be redeemed by the Trust, at its option, any time prior to maturity at a redemption price equal to the greater of the outstanding principal amount and the applicable make-whole amount, plus, in each case, all accrued and unpaid interest.

About Cadillac Fairview Finance Trust

The Trust is a special purpose trust established under the laws of the Province of Ontario. The activities of the Trust are limited to the borrowing of funds from time to time, lending funds to the Cadillac Fairview Group and holding funds in cash and cash equivalents and other ancillary activities.

About Ontario Teachers' Pension Plan Board

OTPP is responsible for providing retirement income to approximately 178,000 elementary and secondary school teachers, 117,000 retired teachers and their families and 68,000 former teachers with entitlements under the Ontario Teachers' Pension Plan (the "Plan"). OTPP is the administrator of the Plan and manager of the pension fund established thereunder (the "Fund"). The Fund is the largest single-profession pension plan in Canada. Further information regarding OTPP can be found in its annual report for the year-ended December 31, 2010 which is available electronically at www.otpp.com.

About the Cadillac Fairview Group

OTPP's real estate portfolio is held through the Cadillac Fairview Group. The real estate portfolio is managed by The Cadillac Fairview Corporation Limited, a leading real estate company with more than 50 years of industry experience. The Cadillac Fairview Group owns, manages, develops and invests in high quality commercial real estate properties in North America and international markets. The portfolio has an estimated value of over $19.3 billion with approximately 50 million square feet of leasable area across 96 properties, including dominant centres such as Toronto Eaton Centre, Toronto Dominion Centre, Pacific Centre, Sherway Gardens and Chinook Centre.

Contact Information

  • Cathal J. O'Connor
    Vice President, Cadillac Fairview Finance NS Ltd.,
    trustee for Cadillac Fairview Finance Trust and
    Executive Vice President and Chief Financial Officer,
    The Cadillac Fairview Corporation Limited
    (416) 598-8306