DBRS rates Granite REIT bonds BBB

DBRS said it assigned a rating of BBB with a stable trend to the C$400 million 3.873% series 3 senior debentures due Nov. 30, 2023 issued by Granite REIT Holdings LP.

The bonds are direct senior unsecured obligations of Granite REIT and will rank equally and rateably in right of payment with one another and with all other unsecured and unsubordinated debt of Granite REIT (including debt under the amended and restated senior credit agreement dated Dec. 11, 2014).

The bonds will be fully and unconditionally guaranteed, on a joint and several basis, by Granite Real Estate Investment Trust and Granite GP and by any subsidiary of Granite REIT that in the future becomes a guarantor under the credit agreement.

Net proceeds from the offering will be used to refinance certain outstanding debt, including the redemption in full of the C$200 million aggregate principal amount outstanding of 4.613% series 1 senior debentures due Oct. 2, 2018, and for general corporate purposes.

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