Morguard Announces $250 Million Offering of 4.307% Series J Senior Unsecured Debentures and Early Redemption of Series H Senior Unsecured Debentures

Executive Summary

• Morguard Corporation announced a $250 million private placement of 4.307% Series J Senior Unsecured Debentures maturing on June 18, 2029.
• Net proceeds will be used to early redeem all outstanding 9.5% Series H Senior Unsecured Debentures due September 2026, with remaining funds allocated to general corporate purposes.
• The Series H debentures will be redeemed at approximately $1,014.753 per $1,000 principal amount on June 22, 2026.

Key Details

• Offering Size & Terms: $250 million aggregate principal amount of Series J Senior Unsecured Debentures bearing interest at 4.307% per annum.
• Maturity & Closing: Debentures mature on June 18, 2029, with an anticipated closing date of June 18, 2026.
• Placement Structure: Offered on an agency basis via a private placement in Canadian provinces, with RBC Capital Markets and TD Securities acting as joint bookrunners and co-lead agents.
• Credit Rating: Morningstar DBRS assigned a provisional rating of "BBB (low)" with a "Stable" trend.
• Redemption Details: Early redemption of all outstanding 9.5% Series H Senior Unsecured Debentures (originally due September 26, 2026) scheduled for June 22, 2026.
• Redemption Price: Approximately $1,014.753 per $1,000 principal amount, plus accrued and unpaid interest up to the redemption date.
• Use of Proceeds: Primarily to fund the early redemption of the Series H debentures, with any balance directed to general corporate purposes.
• Ranking & Jurisdiction: Debentures will rank pari passu with existing senior unsecured debt; not registered under the U.S. Securities Act of 1933 and restricted from U.S. offers or sales.