By Cristal Cody
Prospect News, Sept. 11 - Cominar Real Estate Investment Trust (DBRS: BBB) sold a C$125 million add-on to its 4.274% five-year debentures on Tuesday at 101.174 to yield 3.999%, a bond source said.
The series 1 debentures due June 15, 2017 priced at a spread of 260 basis points over the Government of Canada benchmark.
National Bank Financial Inc. and BMO Capital Markets Corp. were the lead managers.
The debentures are redeemable at the Canada bond yield plus 74 bps.
Proceeds will be used to fund in part the acquisition of a portfolio of 68 office and industrial properties located primarily in the Montreal and Ottawa areas from GE Canada Real Estate Equity.
Cominar REIT first sold the issue on June 12 in a C$125 million offering that priced at par to yield a spread of 295 bps over the Government of Canada benchmark. The total outstanding is C$250 million.
Quebec City-based Cominar REIT holds office, retail and industrial properties in Quebec and Ontario.
| Issuer: | Cominar Real Estate Investment Trust
|
| Amount: | C$125 million reopening
|
| Maturity: | June 15, 2017
|
| Securities: | Debentures
|
| Bookrunners: | National Bank Financial, BMO Capital Markets
|
| Coupon: | 4.274%
|
| Price: | 101.174
|
| Yield: | 3.999%
|
| Spread: | 260 bps over Government of Canada benchmark
|
| Call feature: | Canada bond yield plus 74 bps
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 14
|
| Rating: | DBRS: BBB
|
| Distribution: | Canada
|
| Total outstanding: | C$250 million
|
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