RioCan REIT Announces $500 Million Offering of Series AB Senior Unsecured Debentures

08/07/2019

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

TORONTO, Aug. 07, 2019 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) announced today that it has agreed to issue $500 million principal amount of Series AB senior unsecured debentures (the “Debentures”).

The Debentures are being offered on an agency basis by a syndicate of agents co-led by TD Securities, RBC Capital Markets, BMO Capital Markets and CIBC Capital Markets.  The Debentures will be sold at par, carry a coupon rate of 2.576% per annum and mature on February 12, 2025. Subject to customary closing conditions, the offering is expected to close on August 12, 2019. 

The net proceeds will be used to repay certain existing debt of RioCan.

It is a condition of closing that DBRS Limited assign a rating of BBB(high) with a stable trend and Standard & Poor's assign a rating of BBB for the Debentures with no negative change in outlook to the entity rating given to RioCan.

The offering is being made on a private placement basis in each of the provinces of Canada, and the Debentures will be issued pursuant to RioCan’s trust indenture dated March 8, 2005, as supplemented.  The Debentures will rank equally with all other senior unsecured indebtedness of the Trust. 

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About RioCan

RioCan is one of Canada’s largest real estate investment trusts with a total enterprise value of approximately $14.3 billion at June 30, 2019. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. Our portfolio is comprised of 230 properties, including 13 development properties, with an aggregate net leasable area of approximately 39.1 million square feet including residential rental properties. To learn more about how we deliver real vision on solid ground, visit www.riocan.com.

Forward Looking Information

This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events.  Such 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 cautionary statements.

Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A for the period ended June 30, 2019 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release.  Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to the completion of the offering on the terms and in the timeframe contemplated. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.

The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release.  Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

RioCan Real Estate Investment Trust
Qi Tang
Senior Vice President and Chief Financial Officer
416-866-3033 | www.riocan.com

RioCan_logo_2017.jpg

Source: RioCan Real Estate Investment Trust

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