By Marisa Wong
Los Angeles, Nov. 23 – Dream Industrial REIT announced it priced a C$250 million private placement of 2.539% five-year senior debentures, series D, (DBRS: BBB). The debentures will be issued at par of C$1,000.
The offering is the trust’s second green bond, following the C$400 million of 2.057% series C debentures due 2027 issued in June, according to a press release.
The series D debentures are being offered on an agency basis by a syndicate of agents led by TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc. and National Bank Financial Inc. The debentures are being offered on a private placement basis in each of the provinces of Canada.
Upon closing of the offering, the trust plans to convert the proceeds into euros through cross-currency interest rate swap arrangements, which is expected to result in an effective fixed interest rate of 0.541%.
Closing is expected to take place on Dec. 6.
Proceeds will be used to finance or refinance eligible green projects under the trust’s green financing framework established in June. Prior to allocation of the proceeds to eligible green projects, proceeds may be initially used to fund future acquisitions and development costs, to repay existing debt and for general trust purposes.
Dream Industrial is an unincorporated open-ended real estate investment trust based in Toronto.
| Issuer: | Dream Industrial REIT
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| Amount: | C$250 million
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| Issue: | Senior debentures, series D (green bonds)
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| Maturity: | Dec. 7, 2026
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| Agents: | TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc. and National Bank Financial Inc.
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| Coupon: | 2.539%
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| Price: | Par
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| Yield: | 2.539%
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| Announcement date: | Nov. 23
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| Settlement date: | Dec. 6
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| Expected rating: | DBRS: BBB
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| Distribution: | Canadian private placement
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