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Real estate investment trusts

RioCan Real Estate Investment Trust Completes $700 Million Debenture Issuance

Strategic Insights

— 1 min read

Toronto-based real estate investment trust RioCan announced the completion of its previously announced $700 million debenture issuance, comprising two series: Series AL and Series AM senior unsecured debentures. This financing activity demonstrates RioCan's access to diversified funding sources and is well-aligned with its financing strategy to extend its weighted average term to maturity, maintain strong liquidity, and increase the proportion of unsecured debt relative to secured debt.

Key Takeaways:

  • RioCan completed the issuance of $700 million aggregate principal amount of senior unsecured debentures in two series: Series AL ($500 million) and Series AM ($200 million).
  • The debentures will be used to repay existing indebtedness at or prior to maturity, including the redemption of all $300 million 6.488% Series AI senior unsecured debentures at par.
  • The financing demonstrates RioCan's continued access to diversified funding sources and its ability to maintain strong liquidity and achieve its financing strategy objectives.
  • The weighted-average term to maturity of the financings completed since reporting second-quarter 2024 results is 6.5 years, and the weighted-average interest rate is 4.48% per annum.

Statistics:

  • $700 million: aggregate principal amount of senior unsecured debentures issued
  • $500 million: aggregate principal amount of Series AL senior unsecured debentures issued
  • $200 million: aggregate principal amount of Series AM senior unsecured debentures issued
  • 4.623%: interest rate on Series AL senior unsecured debentures
  • 4.004%: interest rate on Series AM senior unsecured debentures
  • 6.5 years: weighted-average term to maturity of financings completed since second-quarter 2024 results
  • 4.48%: weighted-average interest rate of financings completed since second-quarter 2024 results
  • March 1, 2028: maturity date of Series AM senior unsecured debentures
  • October 3, 2031: maturity date of Series AL senior unsecured debentures
  • $1.05 billion: total financings completed since reporting second-quarter 2024 results
  • $300 million: aggregate principal amount of 6.488% Series AI senior unsecured debentures to be redeemed at par

Sources:

  • ENPNewswire: "RioCan Real Estate Investment Trust Completes $700 Million Issuance of Series AL and Series AM Senior Unsecured Debentures"
  • RioCan Real Estate Investment Trust press release: "RioCan Completes $700 Million Debenture Issuance"
  • RioCan Real Estate Investment Trust MD&A for the period ended June 30, 2024
  • RioCan Real Estate Investment Trust Annual Information Form

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