RioCan REIT Announces Public Offering of $300 Million of Series Y Senior Unsecured Debentures

01/11/2017

TORONTO, ONTARIO--(Marketwired - Jan. 11, 2017) -

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 $300 million principal amount of Series Y senior unsecured debentures (the "Debentures").

The Debentures are being offered on a best efforts agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Debentures will carry a coupon rate of 2.83% and will mature on October 3, 2022. The Debentures were sold at a price of $99.997 per $100 principal amount with an effective yield of 2.831% if held to maturity.

The net proceeds will be used by RioCan to fund development, for property acquisitions, to repay certain indebtedness including indebtedness incurred in the ordinary course under RioCan's operating lines of credit and the balance 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 with a stable outlook.

The offering is being made under RioCan's base shelf short form prospectus dated August 10, 2016. 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 16, 2017.

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.

About RioCan:

RioCan is Canada's largest real estate investment trust with a total enterprise value of approximately $15 billion as at September 30, 2016. RioCan owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 301 Canadian retail and mixed use properties, including 15 properties under development, containing an aggregate net leasable area of 47 million square feet. For further information, please refer to RioCan's website at www.riocan.com.

Contact Information:
RioCan Real Estate Investment Trust
Cynthia J. Devine
Executive Vice President, Chief Financial Officer
and Corporate Secretary
(647) 253-4973
www.riocan.com

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