Choice Properties Real Estate Investment Trust Completes $500 Million Series R Senior Unsecured Debenture Issue


TORONTO–(BUSINESS WIRE)–Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) announced today that it has closed its previously announced issuance, based on a private placement in certain provinces of Canada (the “Placement”) in the aggregate principal amount of $500 million of Series R senior unsecured debentures of the Trust bearing interest at a rate of 6.003% per annum and maturing on June 24, 2032 (the “Debentures”).

The Trust intends to use the net proceeds of the offering (i) to pay the previously announced prepayment of the $300 million principal amount of Choice Properties Limited’s 3.60% Series 10 senior unsecured debentures Partnership on June 26, 2022, (ii) to repay all or part of the balance drawn under the Trust’s credit facility, and (iii) for general business purposes.

DBRS Morningstar has assigned the debentures a credit rating of “BBB” (high) with a “stable” Trend and S&P Global Ratings has assigned the Debentures a credit rating of “BBB”. The Debentures rank pari passu with all other unsecured indebtedness of the Trust which has not been subordinated.

The debentures were sold through an agent by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets and Scotiabank. The Offered Debentures have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the Debentures in any jurisdiction where such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading real estate investment trust that creates lasting value by owning, operating and developing high quality commercial and residential properties.

We believe value comes from creating spaces that enhance the way our tenants and communities come together to live, work and connect. We strive to understand the needs of our tenants and manage our properties to the highest standards. We aspire to build healthy and resilient communities through our commitment to social, economic and environmental sustainability. In everything we do, we are guided by a set of shared values ​​based on care, ownership, respect and excellence.

For more information, see the Choice Properties website at www.choicereit.ca and the Choice Properties issuer profile at www.sedar.com.

Forward-looking statements

This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects Choice Properties’ current expectations regarding future events, including the intended use of the proceeds of the offering. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties’ control, which could cause actual results and events to differ. significantly from those disclosed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, factors discussed in Choice Properties’ 2021 Annual Report, current Annual Information Form and 2022 First Quarter Report. Choice Properties assumes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

Previous Federal charters and long-term ESG goals of the left
Next Why OKC Thunder presented NBA draft picks at Clara Luper Center