By Cristal Cody
Eureka Springs, Ark., Dec. 5 – Granite Real Estate Investment Trust announced on Monday that subsidiary Granite REIT Holdings LP priced a C$400 million private placement offering of 3.873% series 3 seven-year senior debentures.
The debentures (Baa2//DBRS: BBB) will be guaranteed by the parent company and Granite REIT Inc.
Through a cross currency swap, Granite REIT intends to exchange the Canadian dollar-denominated principal and interest payments for euro-denominated payments.
Granite REIT intends to use the proceeds to refinance certain outstanding debt, which will include the full redemption of 4.613% series 1 senior debentures due 2018 on Dec. 21, and for general corporate purposes.
Granite REIT is a Toronto–based real estate investment trust that owns and manages mostly industrial, warehouse and logistics properties in North America and Europe.
| Issuer: | Granite REIT Holdings LP
|
| Guarantors: | Granite Real Estate Investment Trust and Granite REIT Inc.
|
| Amount: | C$400 million
|
| Description: | Senior debentures
|
| Maturity: | 2023
|
| Coupon: | 3.873%
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 20
|
| Ratings: | Moody’s: Baa2
|
| DBRS: BBB
|
| Distribution: | Canada private placement
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