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After including the benefits of bond forward hedging, the Rio Can Real Estate Investment Trust has announced the offering of $ 250 million in 7-year series AF senior unsecured corporate bonds with a coupon rate of 4.628% and an all-in interest rate of 3.829%.

Not for distribution to US newswire or distribution in the United States

Toronto, April 6, 2022 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan” or “Trust”) (TSX: REI.UN) today has a $ 250 million principal series AF senior unsecured Announced that it has agreed to issue. Bonds (“bonds”). With this issuance, RioCan supports strategies, pursues opportunities, and provides additional liquidity to manage potential risks. Including the benefits of forward bond hedging, an all-in-rate of 3.829% is advantageous compared to current market rates, and RioCan has an additional $ 250 million forward bond contract to hedge future issuance. Is concluded.

Bonds are priced at $ 99.998 per $ 100 principal, with a coupon rate of 4.628% annually and due on May 1, 2029. To hedge exposure to potential risk-free interest rate fluctuations associated with trust financing. , RioCan previously signed a specific bond forward contract with a total notional amount of $ 500 million. In connection with this offer, the $ 250 million contract will be settled at a favorable realized market value of $ 14 million against the Trust. This profit is amortized over the term of the bond. The net proceeds of this offer will be used by the Trust to repay certain debt incurred in the regular course. This includes replenishing the company’s line of credit.

Bonds are offered on an agency basis by an agent syndicate jointly led by TD Securities, BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and Scotia Capital Inc. April 18, 2022.

It is a condition of closure that DBRS Limited assigns at least a BBB rating on a stable trend and Standard & Poor’s assigns at least a BBB rating to corporate bonds with a negative outlook for the entity rating given to Rio Can.

The offerings are on a private placement basis in each Canadian state, and the bonds will be issued as a supplement in accordance with Rio Can’s Trust Deed dated March 8, 2005. Bonds are ranked on par with all other senior unsecured debt in the trust.

The bonds offered are not registered under the Securities Act of 1933 (Amendment) and may not be offered or sold in the United States without the applicable exemptions from the registration or registration requirements. This press release does not constitute an offer to sell or solicit a purchase, nor will securities be sold in jurisdictions where such offer, solicitation or sale is illegal.

About Rio Can
RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages, and manages retail-focused, increasingly versatile properties in prime, high-density, public transport-oriented areas where Canadians want to shop, live, and work. I am developing. As of December 31, 2021, our portfolio consists of 207 properties with a total leasable area of ​​approximately 36.4 million square feet (in the interests of RioCan), including offices, home leasing and 13 development properties. .. For more information about our company, please visit www.riocan.com.

Information about future prospects
This news release contains information about the outlook in the sense of applicable Canadian securities law. This information reflects Management’s beliefs, estimates, and intent regarding RioCan’s objectives, strategies to achieve those objectives, and management’s beliefs, estimates, and intent regarding unanticipated future events or expectations that are not past facts. Forward-looking information generally refers to forward-looking terms such as “outlook,” “objective,” “potential,” “will,” “expectation,” “expectation,” “intention,” and “estimation.” Can be identified using. “Expect,” “believe,” “should,” “plan,” “continue,” or similar expressions that suggest future consequences or events.

This forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this news release is qualified by these caveats.

Forward-looking information is not a guarantee of future events or performance and, by its nature, is of a number of risks and uncertainties, including those described in RioCan’s Risks and Uncertainties section. It is based on Rio Can’s current estimates and assumptions affected. MD & A for the period ending December 31, 2021 and the latest annual information form. This may result in actual events or results that differ materially from the forward-looking information contained in this news release.

The forward-looking information contained in this news release is based on management’s belief that it is a reasonable assumption, but there is no guarantee that actual results will match this forward-looking information. ..

Forward-looking statements contained in this news release are current as of this date and should not be relied upon as representing Rio Can’s views on dates after the date of this news release. Management shall not be obliged to publicly update or revise any forward-looking information as a result of new information, future events, etc., except as required by applicable law.


CBJ News Maker

After including the benefits of bond forward hedging, the Rio Can Real Estate Investment Trust has announced the offering of $ 250 million in 7-year series AF senior unsecured corporate bonds with a coupon rate of 4.628% and an all-in interest rate of 3.829%.

Source link After including the benefits of bond forward hedging, the Rio Can Real Estate Investment Trust has announced the offering of $ 250 million in 7-year series AF senior unsecured corporate bonds with a coupon rate of 4.628% and an all-in interest rate of 3.829%.

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