Choice Properties Real Estate Investment Trust today announced that it's completed a the issuance of $450 million aggregate principal amount of senior unsecured debentures of the Trust.
The Debenture Offering was made under Choice Properties' short form base shelf prospectus dated September 3, 2013. The terms of the Debenture Offering are described in a prospectus supplement dated February 3, 2014, which was filed with securities regulators in each of the provinces of Canada.
The Debenture Offering included $250 million principal amount of series C senior unsecured debentures with a 7-year term and a coupon of 3.498% per annum and $200 million principal amount of series D senior unsecured debentures with a 10-year term and a coupon of 4.293% per annum.
DBRS Limited and Standard and Poor's Ratings Services have each provided the Debentures with a credit rating of "BBB". The Debentures rank equally with all other unsecured indebtedness of Choice Properties that has not been subordinated.
The net proceeds of the Debenture Offering will be used by the Trust to repay existing indebtedness and for general business purposes.