TORONTO, ONTARIO--(Marketwired - Jan. 16, 2014) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) announced today that it has reached an agreement to issue to the public on a bought deal basis, subject to regulatory approval, $150 million principal amount of Series U senior unsecured debentures (the "Debentures").
The Debentures are being issued by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Debentures will carry a coupon rate of 3.62% and will mature on June 1, 2020.
The net proceeds will be used by RioCan to fund development, for property acquisitions, to repay certain indebtedness and for general trust purposes.
It is a condition of closing that DBRS Limited ("DBRS") assign a rating of BBB(high) with a stable trend and Standard & Poor's, a division of the McGraw Hill Companies, Inc. ("S&P") assign a rating of BBB- for the Debentures.
The offering is being made under RioCan's base shelf short form prospectus dated June 11, 2012. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The offering is expected to close on or about January 23, 2014.
The 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.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13.6 billion as at September 30, 2013. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 346 retail properties containing more than 83 million square feet, including 51 grocery anchored and new format retail centres containing 14 million square feet in the United States as at September 30, 2013. RioCan's portfolio also includes 15 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.