TORONTO, ONTARIO--(Marketwire - Dec. 6, 2012) -
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 on a bought deal basis, subject to regulatory approval, $200 million principal amount of Series R senior unsecured debentures (the "Debentures").
The Debentures are being issued by a syndicate of underwriters co-led by TD Securities and Scotia Capital. The Debentures will carry a coupon rate of 3.716% and will mature on December 13, 2021.
The net proceeds will be used by RioCan to repay indebtedness, including indebtedness incurred in the ordinary course under RioCan's operating lines of credit, for property acquisitions, to fund development and for general trust purposes.
It is a condition of closing that DBRS Limited ("DBRS") assign a preliminary 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.
The offering is being made under RioCan's base shelf short form prospectus dated June 11, 2012. 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 December 12, 2012.
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.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13.9 billion as at September 30, 2012. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 338 retail properties containing an aggregate of 80 million square feet, including 49 grocery anchored and new format retail centres containing 12.4 million square feet in the United States through various joint venture arrangements as at September 30, 2012. RioCan's portfolio also includes 10 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.