Choice Properties completes offering of debentures

Executive Summary

• Choice Properties Real Estate Investment Trust has completed the private placement issuance of $500 million in aggregate principal amount of senior unsecured debentures, consisting of Series W and Series X tranches.
• The trust intends to use the net proceeds primarily to repay existing indebtedness, specifically the full redemption of $200 million in Series F debentures due in November 2025, with remaining funds for general business purposes.
• The debentures received credit ratings of BBB (high) with a positive trend from Morningstar DBRS and BBB+ from S&P Global Ratings.

Key Details

• Series W Debentures:
  • Aggregate Principal Amount: $350 million
  • Interest Rate: 4.628% per annum
  • Maturity Date: August 8, 2035
• Series X Debentures:
  • Aggregate Principal Amount: $150 million
  • Interest Rate: 5.369% per annum
  • Maturity Date: August 8, 2055
• Use of Proceeds:
  • Repayment of existing indebtedness, including the redemption in full of $200 million aggregate principal amount of 4.055% Series F senior unsecured debentures due November 24, 2025 (scheduled for redemption on September 5, 2025).
  • General business purposes.
• Credit Ratings:
  • Morningstar DBRS: BBB (high) with a positive trend.
  • S&P Global Ratings: BBB+.
• Ranking: The debentures rank equally with all other unsecured indebtedness of the trust that has not been subordinated.
• Underwriters: Sold on an agency basis by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank.
• Regulatory Status: The debentures were sold on a private placement basis in certain provinces of Canada and have not been registered under the U.S. Securities Act of 1933.