RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

August 06, 2014 14:49 ET

RioCan REIT Announces Public Offering of an Additional $100 Million of Series V Senior Unsecured Debentures

TORONTO, ONTARIO--(Marketwired - Aug. 6, 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, $100 million principal amount of Series V senior unsecured debentures (the "Additional Debentures"), which is a re-opening of this series of debentures, the original issuance of which was completed in May 2014.

The Additional Debentures are being issued by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Additional Debentures will carry a coupon rate of 3.746% and will mature on May 30, 2022. The Additional Debentures were sold at a price of $101.070 per $100 principal amount plus accrued interest, with an effective yield of 3.587% if held to maturity. An aggregate of $250 million of such debentures will be outstanding after giving effect to this offering.

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 the Series V senior unsecured debentures continue to be rated at least BBB(high) with a stable trend by DBRS Limited and at least BBB- by Standard & Poor's, a division of the McGraw Hill Companies, Inc.

The offering is being made under RioCan's base shelf short form prospectus dated July 7, 2014. 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 August 11, 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 Additional 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 Additional Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

About RioCan:

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $14.9 billion as at June 30, 2014. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 340 retail properties containing more than 81 million square feet, including 47 grocery anchored and new format retail centres containing 13 million square feet in the United States as at June 30, 2014. RioCan's portfolio also includes 16 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.

Contact Information

  • RioCan Real Estate Investment Trust
    Rags Davloor
    Executive Vice President & CFO
    (416) 642-3554
    www.riocan.com