Retail-focused Choice Properties Real Estate Investment Trust agreed to issue C$1.3 billion of senior unsecured debentures in two tranches, to partly finance its roughly C$16 billion merger with Canadian REIT.
The notes will be issued in a private placement and will comprise C$550 million of 3.556% series K senior unsecured debentures due Sept. 9, 2024, and C$750 million of 4.178% series L senior unsecured debentures due March 8, 2028.
The offering is expected to close March 8.
The net proceeds will be held in escrow and released upon fulfillment of certain conditions, including the close of the merger. The debt will also be subject to a special mandatory redemption if the acquisition agreement is terminated or the pertinent escrow release conditions are not fulfilled by Oct. 13.
A syndicate of agents co-led by TD Securities, RBC Capital Markets, CIBC Capital Markets and BMO Capital Markets will offer the notes.
