06:35 AM EDT, 05/22/2024 (MT Newswires) -- DBRSChoice Properties Real Estate Investment Trust's (CHP-UN.TO) overnight Tuesday agreed to issue, on a private placement basis in certain provinces of Canada, $500 million aggregate principal amount of series U senior unsecured debentures of the Trust that will bear interest at a rate of 5.030% per annum and will mature on February 28, 2031.

According to a statement, the Debentures will be sold at a price of $99.996 per $100 principal amount, with a yield of 5.032% per annum, and are being offered on an agency basis by a syndicate of agents. The statement said subject to customary closing conditions, the Offering is expected to close on May 23, 2024. The Trust intends to use the net proceeds of the Offering, together with other available funds, to repay upon maturity its outstanding $550 million aggregate principal amount of 3.556% series K senior unsecured debentures due September 9, 2024.

The statement added it is a condition of closing of the Offering that the Debentures be rated at least "BBB" (high) with a "stable" trend by DBRS Limited and at least "BBB" by Standard and Poor's Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.