Choice Properties Real Estate Investment Trust to Issue $1.3 billion of Series K and Series L Senior Unsecured Debentures

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[{"type":"text","content":"\n\n\n\nChoice Properties Real Estate Investment Trust to Issue $1.3 billion of Series K and Series L Senior Unsecured Debentures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 6, 2018\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n\n\nTORONTO, March 6, 2018 /CNW/ - Choice Properties Real Estate Investment Trust (\"Choice Properties\" or the \"Trust\") (TSX: CHP.UN) announced today that it has agreed to issue, on a private placement basis in certain Provinces of Canada, $1.3 billion aggregate principal amount of senior unsecured debentures of the Trust in two series (the \"Offering\"). The Offering includes (i) $550 million aggregate principal amount of series K senior unsecured debentures that will bear interest at a rate of 3.556% per annum and will mature on September 9, 2024, and (ii) $750 million aggregate principal amount of series L senior unsecured debentures that will bear interest at a rate of 4.178% per annum and will mature on March 8, 2028 (collectively, the \"Debentures\").\n\nThe Debentures are being offered on an agency basis by a syndicate of agents co-led by TD Securities, RBC Capital Markets, CIBC Capital Markets and BMO Capital Markets. Subject to customary closing conditions, the Offering is expected to close on March 8, 2018.\n\nThe net proceeds of the Offering will be used by the Trust to partially fund the purchase price in respect of the Trust's previously-announced acquisition of all of the assets of Canadian Real Estate Investment Trust (the \"Acquisition\").  \n\nThe net proceeds of the Offering will be placed in escrow and will be released from escrow upon satisfaction of the applicable release conditions, including the completion of the Acquisition. The Debentures will also be subject to a special mandatory redemption in the event that the agreement relating to the Acquisition is terminated or the applicable escrow release conditions are not satisfied by October 13, 2018. The redemption price for any special manda...

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