Choice Properties REIT Issues $300 Million in Debentures
Choice Properties REIT Successfully Completes Debenture Issuance
Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) has announced a significant milestone by completing its issuance of $300 million in Series V senior unsecured debentures. This was conducted on a private placement basis, emphasizing the Trust's strategic movements in the financial world.
Details of the Debenture Issuance
The series V debentures were issued with a competitive interest rate of 4.293% per annum, set to mature on January 16, 2030. The Trust plans to utilize the net proceeds from this offering primarily to pay down amounts drawn from its revolving credit facility—a move aimed at streamlining its financial obligations. Notably, the funds raised will also be directed towards general business purposes, ensuring the Trust maintains its operational agility.
Strategic Financial Management
This strategic initiative to repay the Trust's $350 million in 3.546% series J senior unsecured debentures highlights Choice Properties' proactive financial management. By efficiently managing its debt, the Trust aims to leverage its financial stability for future growth and investment opportunities.
Credit Ratings and Assurance
Morningstar DBRS has rated the debentures “BBB” (high) with a stable outlook, while S&P Global Ratings has rated them “BBB+.” Such favorable credit ratings reflect the Trust's strong financial position and operational performance, providing assurance to investors about the security of their investment.
Trust’s Commitment to Integrity
These debentures rank equally with all other unsecured indebtedness, which shows the Trust's commitment to treating all creditors fairly and with integrity. This strategic decision not only helps in managing the existing debt but also builds investor confidence.
Agent Syndicate and Sale Facts
The sale of these debentures was facilitated by a well-coordinated syndicate of agents co-led by major financial institutions such as RBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, and CIBC Capital Markets. This diverse consortium underscores the collaborative efforts in the financial sector to support the Trust's capital-raising initiatives.
About Choice Properties Real Estate Investment Trust
Choice Properties stands out as a premier Real Estate Investment Trust committed to developing and managing high-quality commercial and residential properties. The Trust is dedicated to creating spaces that not only foster commercial success but also promote sustainable living and community connection.
With an emphasis on environmental, social, and economic sustainability, Choice Properties leads the industry in integrating these critical practices across all its operations. Their core values—Care, Ownership, Respect, and Excellence—guide every aspect of their work, ensuring that they create lasting value for tenants and communities alike.
Contact Information
For further inquiries or more detailed information about Choice Properties, you can visit their corporate website and explore their comprehensive issuer profile online. Their commitment to transparency and information sharing supports informed investment decisions.
Frequently Asked Questions
What is the total amount raised from the debenture issuance?
The total amount raised from the issuance of the Series V senior unsecured debentures is $300 million.
What is the interest rate on the new debentures?
The debentures bear an interest rate of 4.293% per annum.
When are the Series V debentures set to mature?
The Series V debentures are set to mature on January 16, 2030.
What will the proceeds from the offering be used for?
The proceeds will be used primarily to repay amounts drawn on the revolving credit facility and for general business purposes.
Who were the agents involved in the issuance?
The issuance was co-led by RBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, and CIBC Capital Markets.
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