SmartCentres Closes $500 Million Series AC and Series AD Senior Unsecured Debenture Issues

Executive Summary

• SmartCentres REIT closed a $500 million private placement consisting of $250 million of 3.599% Series AC debentures (maturing June 12, 2029) and $250 million of 4.318% Series AD debentures (maturing June 12, 2032).
• The net proceeds will be used to refinance existing debt—including repayment of $350 million Series X senior unsecured debentures due Dec 16, 2025, the revolving credit facility, and certain mortgages—as well as for general corporate purposes.
• Morningstar DBRS assigned a BBB rating with a stable trend to the newly issued debentures.

Key Details

• Placement Size: $250 million Series AC + $250 million Series AD = $500 million aggregate principal amount.
• Interest Rates & Maturities:
• Series AC – 3.599% senior unsecured debentures, maturity June 12, 2029.
• Series AD – 4.318% senior unsecured debentures, maturity June 12, 2032.
• Syndicate Lead Agents / Bookrunners: Scotiabank, CIBC Capital Markets, Desjardins Securities, RBC Capital Markets, TD Securities (joint bookrunners); National Bank Financial, Mizuho Securities, BMO Capital Markets, Beacon Securities (co‑managers).
• Credit Rating: BBB (stable) from Morningstar DBRS for both series.
• Use of Proceeds:
• Repayment of $350 million Series X senior unsecured debentures due Dec 16, 2025.
• Repayment of revolving credit line and certain mortgage obligations.
• General corporate purposes.
• Regulatory Note: The debentures are not registered under the U.S. Securities Act of 1933; sales to U.S. persons are limited to applicable exemptions.

Notable Quotes

(No direct quotes were included in the release.)