/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Feb. 27,
2024 /CNW/ - First Capital REIT ("First Capital" or
the "REIT") (TSX:FCR.UN), announced today that it has agreed to
issue C$300 million aggregate
principal amount of Series B senior unsecured debentures (the
"Debentures").
The Debentures are being offered on an agency basis by a
syndicate of agents co‐led by Desjardins Capital Markets, RBC
Capital Markets and TD Securities. The Debentures, which will be
issued at par, will bear interest at a rate of 5.572% per annum and
will mature on March 1, 2031.
Inclusive of the benefit of bond forward hedges, the REIT's all-in
interest rate will be 5.481% per annum. Subject to customary
closing conditions, the offering is expected to close on
March 1, 2024. It is a condition of
closing that the Debentures be rated at least "BBB (stable)" by
DBRS.
The offering is being made on a private placement basis in
certain provinces of Canada, and
the Debentures will be issued pursuant to the REIT's trust
indenture dated as of May 25, 2020,
as supplemented. The Debentures will be direct unsecured
obligations of the REIT and will rank equally and rateably with all
other present and future unsecured and unsubordinated indebtedness
of the REIT.
The net proceeds of the offering will be used to repay existing
debt.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
About First Capital REIT (TSX: FCR.UN)
First Capital owns, operates and develops grocery-anchored,
open-air centres in neighbourhoods with the strongest demographics
in Canada.
www.fcr.ca
TSX: FCR.UN
Forward‐looking Statement Advisory
This press release contains forward‐looking statements and
information within the meaning of applicable securities laws,
including statements about the REIT's issuance of the Debentures,
the use of proceeds thereof and the effect of bond forward
hedges. These forward‐looking statements are not historical
facts but, rather, reflect First Capital's current expectations and
are subject to risks and uncertainties that could cause the outcome
to differ materially from current expectations. Such risks and
uncertainties include, among others, those discussed in First
Capital's MD&A for the year ended December 31, 2023 as well as in its current
Annual Information Form. Readers, therefore, should not place undue
reliance on any such forward‐looking statements. First
Capital undertakes no obligation to publicly update any such
forward‐looking statement or to reflect new information or the
occurrence of future events or circumstances except as required by
applicable securities laws. All forward‐looking statements in this
press release are made as of the date hereof and are qualified by
these cautionary statements.
SOURCE First Capital Real Estate Investment Trust