By Devika Patel
Knoxville, Tenn., Dec. 3 – Granite Real Estate Investment Trust announced on Thursday that subsidiary Granite REIT Holdings LP priced C$500 million of 2.378% series 5 10-year senior debentures.
Through a cross currency interest rate swap, Granite LP has exchanged the Canadian dollar-denominated principal and interest payments for euro-denominated payments, resulting in an effective fixed interest rate of 1.045% for the 10-year term of the debentures.
BMO Capital Markets and Scotia Capital Inc. co-led the offering.
The debentures will be guaranteed by the parent company and Granite REIT Inc.
Proceeds will be used to refinance debt, including redeeming the company’s series 2 senior debentures due 2021, 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
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| Guarantors: | Granite Real Estate Investment Trust and Granite REIT Inc.
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| Amount: | C$500 million
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| Description: | Senior debentures
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| Maturity: | Dec. 18, 2030
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| Co-lead managers: | BMO Capital Markets and Scotia Capital Inc.
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| Coupon: | 2.378%
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| Announcement date: | Dec. 3
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| Settlement date: | Dec. 18
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