By Cristal Cody
Prospect News, Jan. 18 - RioCan Real Estate Investment Trust sold C$100 million 5.25% series A cumulative rate five-year reset preferred trust units on Monday, according to sources.
The 4 million units (/P-3/DBRS: Pfd-3) were sold at C$25.00 each.
The distribution rate will be reset on March 31, 2016 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 2.62%.
The preferreds are redeemable by RioCan at its option on March 31, 2016 and on March 31 of every fifth year thereafter.
RBC Capital Markets Corp., Macquarie Capital Markets Canada Ltd. and Scotia Capital Inc. were the lead managers. The underwriters have an over-allotment option to purchase up to 1 million additional units at the same offering price within 30 days of closing.
The proceeds will be used to help redeem C$180 million of 8.33% series L senior debentures due April 3, 2014 and for general trust purposes.
The Toronto-based closed-end trust is Canada's largest real estate investment trust focused on shopping centers.
| Issuer: | RioCan Real Estate Investment Trust
|
| Amount: | C$100 million (4 million units)
|
| Greenshoe: | C$25 million (1 million units)
|
| Maturity: | March 31, 2016
|
| Securities: | Cumulative rate five-year reset preferred trust units
|
| Bookrunners: | RBC Capital Markets Corp., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc.
|
| Dividend: | 5.25%
|
| Price: | Par of C$25.00
|
| Yield: | 5.25%
|
| Call: | On March 31, 2016 and every five years thereafter
|
| Pricing date: | Jan. 17
|
| Ratings: | Standard & Poor's: P-3
|
| DBRS: Pfd-3
|
| Distribution: | Canada
|
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