Granite REIT sets 111.1943 redemption price for 6.05% notes due 2016

By Toni Weeks

San Luis Obispo, Calif., July 30 – Granite Real Estate Investment Trust announced the redemption price to be paid by subsidiary Granite REIT Holdings LP for the redemption of its outstanding $265 million of 6.05% debentures due Dec. 22, 2016. The redemption will occur on Aug. 5.

The redemption price was determined on Wednesday and is equal to $1,111.943 per $1,000 principal amount of debentures, according to a 6-K filing with the Securities and Exchange Commission.

The company calculated the price based on the higher of (i) the Canada Yield Price and (ii) 100% of the principal amount of the debentures. The Canada Yield Price of $1,104.65 was determined in accordance with the trust indenture based on the 1.128% Government of Canada Yield (an arithmetic average of the yields to maturity quoted by two Canadian investment dealers) plus 42.5 basis points, for a redemption yield of 1.553%. The company will also pay accrued interest to the redemption date.

The redemption will be financed with the proceeds from a $250 million offering of 3.788% series 2 senior debentures due 2021 along with other available funds.

Granite is a Toronto-based real estate investment trust that owns industrial, warehouse and logistics properties in North America and Europe.

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