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Granite Completes Offering Of $400 Million 3.873% Senior Debentures Due 2023 And Redemption Of Senior Debentures Due 2018
Granite Completes Offering Of $400 Million 3.873% Senior Debentures Due 2023 And Redemptio...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite Completes Offering Of $400 Million 3.873% Senior Debentures Due 2023 And Redemption Of Senior Debentures Due 2018\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\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 21, 2016\n\n\n\nTORONTO, Dec. 21, 2016 /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\") completed its previously announced offering (the \"Offering\") of $400 million aggregate principal amount of 3.873% Series 3 Senior Debentures due 2023 (the \"Debentures\") on December 20, 2016. The Debentures are guaranteed by Granite and Granite REIT Inc.\n\nThrough a cross currency swap, Granite LP has exchanged the Canadian dollar denominated principal and interest payments for euro denominated payments, resulting in an effective interest rate of 2.43% for the term of the Debentures.\n\nGranite also announced today that with a portion of the net proceeds of the Offering, Granite LP has redeemed in full the $200 million aggregate principal amount outstanding of Granite LP's 4.613% Series 1 Senior Debentures due 2018 (the \"2018 Debentures\"), in accordance with the notice of redemption previously delivered to the registered holder of the 2018 Debentures.\n\nGranite LP has also used a portion of the net proceeds of the Offering to repay its credit facility which, together with cash on hand, had provided bridge financing to repay approximately $105 million of Granite's mortgages and construction loans that were due to mature within the next 18 months. As a result, Granite's entire property portfolio is now unencumbered.\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 defi...