07:22 AM EDT, 03/26/2024 (MT Newswires) -- RioCan Real Estate Investment Trust (REI-UN.TO) overnight Monday said it will issue an additional $150 million principal amount of its 5.470% Series AJ senior unsecured debentures, maturing on March 1, 2030. They will be sold at $100.549 per $100 principal amount, with a re-opening yield of 5.357% and an all-in interest rate for RioCan of 5.273% per annum, inclusive of the benefit of bond forward hedges. The debentures will have the same terms and conditions and be part of the same series as the existing $300 million, Series AJ Debentures issued by the Trust on February 12, 2024, except for their date of issue, price to the public, and initial CUSIP number.

Net proceeds of this offering will be used to repay existing indebtedness.

It is a condition of closing that DBRS Morningstar assign a rating of at least BBB with a stable trend and S&P Global Ratings assign a rating of at least BBB for the additional debentures, the statement noted.

The additional debentures will rank equally with all other senior unsecured indebtedness of the Trust.