Allied Properties arranges $450M debenture offering

Executive Summary

• Allied Properties Real Estate Investment Trust has agreed to offer $450 million in aggregate principal amount of Series N senior unsecured debentures via private placement in Canada.
• The debentures carry an interest rate of 4.667% per annum, mature on September 25, 2031, and are expected to be rated BBB with a negative trend by Morningstar DBRS.
• Net proceeds are intended for the financing/refinancing of eligible green projects, with immediate interim use directed toward repaying the construction loan on 108 East 5th Ave., Vancouver, and repaying amounts drawn under its unsecured revolving operating facility.

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.
• Placement Method: Private placement in each province and territory of Canada on an agency basis.
• Syndicate Agents: Co-led by RBC Capital Markets and Bank of Nova Scotia; includes ATB Capital Markets, CIBC Capital Markets, BMO Capital Markets, and TD Securities.
• Advisers: Scotiabank and RBC Capital Markets acted as sustainability structuring advisers.
• Closing Date: Expected to close on September 25, 2025, subject to customary closing conditions.
• Use of Proceeds:
  • Primary: Financing and/or refinancing of eligible green projects in line with Allied's green financing framework.
  • Interim: Full repayment of the construction loan on 108 East 5th Ave., Vancouver.
  • Balance: Repayment of amounts drawn under its unsecured revolving operating facility and repayment of an unsecured term loan.
• Credit Rating: Expected to be rated BBB with a negative trend by Morningstar DBRS.
• Ranking: Equally ranked with all other unsecured indebtedness of Allied not subordinated.
• Framework: Issued under Allied's green financing framework.
• Default Clause: Failure to allocate proceeds as described will not constitute an event of default under the Series N indenture.