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TORONTO, Feb. 18, 2020 /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 (the "Offering"), $500 million aggregate principal amount of senior unsecured debentures of the Trust in two series. The Offering includes: (i) $400 million aggregate principal amount of series N senior unsecured debentures that will bear interest at a rate of 2.981% per annum and will mature on March 4, 2030, and (ii) $100 million aggregate principal amount of series O senior unsecured debentures that will bear interest at a rate of 3.827% per annum and will mature on March 4, 2050 (collectively, the "Debentures").

Offering of Debentures

The Debentures are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, BMO Capital Markets, TD Securities, CIBC Capital Markets and Scotiabank. Subject to customary closing conditions, the Offering is expected to close on March 3, 2020.

The net proceeds of the Offering will be used by the Trust to repay existing indebtedness of the Trust, including redemption in full of the Trust's $250 million aggregate principal amount of 2.297% series E senior unsecured debentures due September 14, 2020, as well as to repay a portion of the balance drawn on the Trust's credit facility.  

It is a condition of closing of the Offering that the Debentures be rated at least "BBB" with a "stable" trend by DBRS Limited and at least "BBB" by Standard and Poor's Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 726 properties totaling 65.8 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity-based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.

Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' current Annual Information Form. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

SOURCE Choice Properties Real Estate Investment Trust

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