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RioCan REIT Announces Public Offering of $150 Million of Series V Senior Unsecured Debentures

June 7, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) announced that it has reached an agreement to issue to the public on a bought deal basis, subject to regulatory approval, $150 million principal amount of Series V senior unsecured debentures (the "Debentures").

The Debentures are being issued by a syndicate of underwriters co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Debentures will carry a coupon rate of 3.746% and will mature on May 30, 2022.

The net proceeds will be used by RioCan to fund development, for property acquisitions, to repay certain indebtedness and for general trust purposes.

It is a condition of closing that DBRS Limited ("DBRS") assign a rating of BBB(high) with a stable trend and Standard & Poor's, a division of the McGraw Hill Companies, Inc. ("S&P") assign a rating of BBB- for the Debentures.

The offering is being made under RioCan's base shelf short form prospectus dated June 11, 2012. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The offering is expected to close on or about May 30, 2014.

The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

Keywords for this news article include: Investment and Finance.

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Source: Investment Weekly News


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