CT REIT Announces Offering of $250M 3.029% Series H Senior Unsecured Debentures due February 5, 2029 and Redemption of $150M 2.852% Series A Senior Unsecured Debentures due June 9, 2022

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CT REIT Announces Offering of $250M 3.029% Series H Senior Unsecured Debentures due February 5, 2029 and Redemption of $150M 2.852% Series A Senior Unsecured Debentures due June 9, 2022

Canada NewsWire


TORONTO, January 12, 2022 /CNW/ - CT Real Estate Investment Trust ("CT REIT") (TSX: CRT.UN) announced today that it has agreed to issue, on a private placement basis in each of the provinces of Canada (the "Debenture Offering"), $250 million aggregate principal amount of series H senior unsecured debentures with a seven-year term and a coupon of 3.029% per annum (the "Series H Debentures"). CT REIT intends to use the net proceeds of the Debenture Offering to redeem all of its outstanding 2.852% Series A Senior Unsecured Debentures due June 9, 2022 (the "Series A Debentures"), to pay down certain amounts outstanding under its credit facilities, and to retain the balance of the proceeds for general business purposes.

Offering of Series H Debentures

The Debenture Offering will be on an agency basis led by RBC Capital Markets, BMO Nesbitt Burns and CIBC World Markets. Subject to customary closing conditions, the Debenture Offering is expected to close on or about February 3, 2022.

It is expected that the Series H Debentures will be rated "BBB" by S&P Global Ratings and "BBB" with a "stable" trend by DBRS Limited. The Series H Debentures will be direct senior unsecured obligations of CT REIT.

The Series H Debentures offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series H Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Redemption of Series A Debentures

CT REIT announced today that it has provided holders of its Series A Debentures a notice of redemption pursuant to which CT REIT intends to redeem the entire outstanding principal amount of Series A Debentures on February 11, 2022. As of the date hereof, $150 million aggregate principal amount of Series A Debentures is outstanding.

On the redemption date, the outstanding Series A Debentures will be redeemed in accordance with their terms at a redemption price per $1,000 principal amount of Series A Debentures equal to $1,004.96 plus accrued and unpaid interest, to but excluding the redemption date, of $5.00, and will thereafter cease to be outstanding.

About CT Real Estate Investment Trust

CT REIT is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada. Its portfolio is comprised of over 350 properties totalling approximately 29 million square feet of GLA, consisting primarily of net leased single-tenant retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant. For more information, visit www.ctreit.com.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects CT REIT's current expectations regarding future events, including but not limited to the credit ratings expected to be given to the Series H Debentures, the use of proceeds of the Debenture Offering, the date the Debenture Offering is expected to close and the redemption of the Series A Debentures. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond CT REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under Section 4 "Risk Factors" in CT REIT's Annual Information Form for fiscal 2020 and Section 11 "Enterprise Risk Management" in CT REIT's Management's Discussion and Analysis for fiscal 2020, both of which are available on CT REIT's website at www.ctreit.com and on SEDAR at www.sedar.com. CT REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

SOURCE CT Real Estate Investment Trust (CT REIT)

Cision View original content: http://www.newswire.ca/en/releases/archive/January2022/12/c5495.html

Copyright CNW Group 2022

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