Choice Properties Real Estate Investment Trust Announces Issuance of $350 million of Series W Senior Unsecured Debentures and $150 million of Series X Senior Unsecured Debentures, and Redemption of $200 million of Series F Senior Unsecured Debentures

Executive Summary

• Choice Properties Real Estate Investment Trust announced a private placement of $500 million in aggregate principal amount of senior unsecured debentures, consisting of Series W and Series X tranches.
• The net proceeds from the offering are intended to repay existing indebtedness, specifically the full redemption of the $200 million Series F debentures, with the remainder for general business purposes.
• The Series F debentures will be redeemed on September 5, 2025, at par plus accrued interest, with a record date of September 4, 2025.

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
• Offering Terms:
  • Sold at par
  • Agency basis co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank
  • Expected Closing Date: August 8, 2025
  • Rating Conditions: Must be rated at least “BBB” (high) with a “positive” trend by Morningstar DBRS and at least “BBB+” by Standard and Poor’s Ratings Services
• Use of Proceeds:
  • Repayment of existing indebtedness, including redemption of Series F Debentures
  • General business purposes
• Redemption of Series F Debentures:
  • Aggregate Principal Amount: $200 million
  • Redemption Date: September 5, 2025
  • Record Date: September 4, 2025
  • Redemption Price: $1,000 per $1,000 principal amount plus accrued and unpaid interest of $11.554