RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

March 30, 2009 14:17 ET

RioCan Real Estate Investment Trust Announces $180 Million Series L Senior Unsecured Debenture Issue and Partial Repurchase of Series D and Series J Senior Unsecured Debentures

TORONTO, ONTARIO--(Marketwire - March 30, 2009) -


RioCan Real Estate Investment Trust (TSX:REI.UN) ("RioCan") announced today that it has agreed to issue $180 million principal amount of Series L senior unsecured debentures. These debentures will carry a coupon rate of 8.33% and will mature on April 3, 2014. The debentures will be sold on an underwritten basis by a syndicate led by RBC Capital Markets. Closing of this issue is expected on or about April 3, 2009.

Edward Sonshine, Q.C., President and CEO of RioCan said, "RioCan's ability to access the unsecured corporate bond market in a challenging financial environment is a testament to our strong track record, the strength of our balance sheet and our overall credit quality."

This offering is being made under RioCan's base shelf prospectus dated June 13, 2008. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

The net proceeds from the offering will be used by RioCan to repurchase, at par, $4.62 million of its September 21, 2009 5.29% Series D and $50.38 million of its March 24, 2010 4.938% Series J senior unsecured debentures, to provide additional financial flexibility to its substantial liquidity position, to repay indebtedness incurred under its operating credit facilities, to fund development activities and future property acquisitions and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration requirements.

About RioCan

RioCan is Canada's largest real estate investment trust with a total market capitalization of approximately $6.3 billion as at December 31, 2008. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 248 retail properties, including 13 under development, containing an aggregate of over 59 million square feet. For further information, please refer to RioCan's website at

Contact Information

  • RioCan Real Estate Investment Trust
    Rags Davloor
    Senior Vice President & CFO
    (416) 642-3554