By Marisa Wong
Los Angeles, March 31 – Dream Industrial REIT announced it priced a C$200 million private placement of 3.968% senior debentures, series E, due April 13, 2026 (DBRS: BBB). The debentures will be issued at par of C$1,000, according to a press release.
The offering is the trust’s third green bond, following the C$400 million of 2.057% series C debentures due 2027 issued in June 2021 and C$250 million of 2.539% series D debentures due 2026 issued in November.
The series E 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 CIBC. 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 2.041%.
Closing is expected to take place on April 13.
Proceeds will be used to finance or refinance eligible green projects under the trust’s green financing framework established in June 2021. 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$200 million
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Issue: | Senior debentures, series E (green bonds)
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Maturity: | April 13, 2026
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Agents: | TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc. and CIBC
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Coupon: | 3.968%
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Price: | Par
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Yield: | 3.968%
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Announcement date: | March 31
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Settlement date: | April 13
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Expected rating: | DBRS: BBB
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Distribution: | Canadian private placement
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