By Wendy Van Sickle
Columbus, Ohio, Oct. 10 – Granite Real Estate Investment Trust announced on Tuesday that subsidiary Granite REIT Holdings LP priced C$400 million of 6.074% series 7 senior green debentures due April 12, 2029.
The debentures are being issued as Granite’s third green bond under its green bond framework.
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 4.9285% for the 5.5-year term of the debentures.
Scotia Capital Inc. and TD Securities Inc. co-led the offering.
The debentures will be guaranteed by the parent company and Granite REIT Inc.
A closing condition is that DBRS Morningstar and Moody’s Investor Service, Inc. assign the debentures credit ratings of “BBB (high)” with a stable trend or higher, and “Baa2” or higher, respectively.
Proceeds will be used to refinance existing debt, including Granite’s series 3 senior unsecured debentures due Nov. 30, 2023 at maturity, 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$400 million
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| Issue: | Senior green debentures
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| Maturity: | April 12, 2029
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| Co-lead managers: | Scotia Capital Inc. and TD Securities Inc.
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| Coupon: | 6.074%
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| Announcement date: | Oct. 10
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| Settlement date: | Oct. 12
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