SmartCentres closes $500-million debenture financing

Executive Summary

• SmartCentres Real Estate Investment Trust has closed a $500 million private placement of senior unsecured debentures, consisting of two series: Series AC and Series AD.
• The net proceeds from the issuance will be primarily used to refinance existing debt, specifically the repayment of $350 million in Series X senior unsecured debentures, as well as repaying a revolving credit line and certain mortgages.
• The transaction was managed by a syndicate of major Canadian financial institutions, with Morningstar DBRS assigning a BBB credit rating with a stable trend to the debentures.

Key Details

• Total Gross Proceeds: $500 million aggregate principal amount.
• Series AC Details:
  • Amount: $250 million.
  • Interest Rate: 3.599%.
  • Maturity Date: June 12, 2029.
• Series AD Details:
  • Amount: $250 million.
  • Interest Rate: 4.318%.
  • Maturity Date: June 12, 2032.
• Use of Proceeds:
  • Refinancing existing debt, including the repayment of $350 million of Series X senior unsecured debentures due December 16, 2025.
  • Repayment of revolving credit line and certain mortgages.
  • General corporate purposes.
• Underwriters/Agents:
  • Joint Bookrunners: Bank of Nova Scotia, CIBC Capital Markets, Desjardins Securities, RBC Capital Markets, and TD Securities.
  • Co-Managers: National Bank Financial, Mizuho Securities, BMO Capital Markets, and Beacon Securities.
• Credit Rating: BBB with a stable trend, provided by Morningstar DBRS.