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TORONTO, January 13, 2025--(BUSINESS WIRE)--Choice Properties Real Estate Investment Trust ("Choice Properties", the "Trust" or "we") (TSX: CHP.UN) announced today that it has agreed to issue, on a private placement basis in certain provinces of Canada (the "Offering"), $300 million aggregate principal amount of series V senior unsecured debentures of the Trust that will bear interest at a rate of 4.293% per annum and will mature on January 16, 2030 (the "Debentures").
Offering of Debentures
The Debentures will be sold at par, and are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, and CIBC Capital Markets. Subject to customary closing conditions, the Offering is expected to close on January 16, 2025. The Trust intends to use the net proceeds of the Offering to repay certain amounts drawn on its revolving credit facility which were utilized to repay upon maturity its $350 million aggregate principal amount of 3.546% series J senior unsecured debentures, and for general business purposes.
It is a condition of closing of the Offering that the Debentures be rated at least "BBB" (high) with a "stable" trend by Morningstar DBRS and at least "BBB+" by Standard and Poor’s Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.
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. This 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 Debentures in any jurisdiction in which 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 enduring value through places where people thrive.
We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.