Allied Properties completes $450-million bond offering

Executive Summary

• Allied Properties Real Estate Investment Trust has completed a $450 million private placement of Series N senior unsecured debentures.
• The debentures carry an interest rate of 4.667% per annum and mature on September 25, 2031.
• Proceeds are designated for green projects under Allied's green financing framework, with immediate interim use for repaying specific construction loans and operating facilities.

Key Details

• Transaction Size: $450 million aggregate principal amount.
• Instrument: Series N senior unsecured debentures.
• Interest Rate: 4.667% per annum.
• Maturity Date: September 25, 2031.
• Pricing: Sold at par with a yield of 4.667% per annum.
• Underwriters/Agents: Syndicate co-led by RBC Capital Markets and Scotiabank; included ATB Capital Markets, CIBC Capital Markets, BMO Capital Markets, and TD Securities.
• Advisers: Scotiabank and RBC Capital Markets acted as sustainability structuring advisers.
• Credit Rating: BBB with a negative trend by Morningstar DBRS.
• Use of Proceeds:
  • Primary intent: Financing and/or refinancing of eligible green projects in line with the company's green financing framework.
  • Interim use: Full repayment of the construction loan on 108 East 5th Ave., Vancouver; repayment of amounts drawn under the unsecured revolving operating facility; balance applied to repayment of an unsecured term loan.
• Legal Structure: Debentures rank equally with all other unsecured indebtedness of Allied not subordinated. Failure to allocate proceeds to green projects is not an event of default under the Series N indenture.

Notable Quotes

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