Business
Granite Completes Offering of $250 Million 3.788% Senior Debentures Due 2021 and Issues Notice of Redemption of Senior Unsecured Debentures Due 2016
TORONTO , July 3, 2014 /CNW/ -  Granite Real Estate Investment Trust ("Granite") (TS...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\nTORONTO, July 3, 2014 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN; NYSE: GRP.U) announced today that its wholly owned subsidiary Granite REIT Holdings Limited Partnership (\"Granite LP\") has completed its previously announced offering (the \"Offering\") of $250 million aggregate principal amount of 3.788% Series 2 Senior Debentures due 2021 (the \"Debentures\").  The Debentures will be guaranteed by Granite, Granite REIT Inc. and, until redemption of the 2016 Debentures (as defined below), certain subsidiaries of Granite LP. \n\nThrough a cross currency swap, Granite LP has exchanged the Canadian dollar denominated interest payments for euro denominated interest payments to result in an effective interest rate of 2.68% for the term of the Debentures.\n\nGranite also announced today that Granite LP will redeem in full the outstanding $265 million 6.05% debentures due 2016 (the \"2016 Debentures\").  A notice of redemption has today been delivered to the registered holder of the 2016 Debentures that the 2016 Debentures will be redeemed in full on August 5, 2014 (the \"Redemption Date\").  Granite LP intends to use the net proceeds from the Offering, together with other available funds, to complete the redemption of the 2016 Debentures.\n\nThe 2016 Debentures will be redeemed on the Redemption Date for a redemption price that is the higher of the principal amount, and the Canada Yield Price calculated under the trust indenture governing the 2016 Debentures, together in each case with accrued and unpaid interest to the Redemption Date.  Under the terms of the trust indenture, the redemption price will be determined on July 30, 2014 (3 business days prior to the Redemption Date).\n\nUpon redemption of the 2016 Debentures in full, the guarantees of certain subsidiaries of Granite LP pertaining to the Debentures will be automatically released.\n\nThis press release does not constitute an offer to sell or the solicitation of an offer to buy the Debentures in any jurisdiction.  The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the \"U.S. Securities Act\"), and accordingly may not be offered or sold in the United States or to or for the account or benefit of U.S. Persons (as such term is defined in Regulation S ...