Granite REIT Completes C$500 Million Green Bond Offering
June 04 2020 - 5:02PM
Business Wire
Granite Real Estate Investment Trust (“Granite” or the
“REIT”) (TSX: GRT.UN / NYSE: GRP.U) announced today that its
wholly owned subsidiary Granite REIT Holdings Limited Partnership
(“Granite LP”) has completed its previously announced
offering (the “Offering”) of C$500 million aggregate
principal amount of 3.062% Series 4 senior unsecured debentures due
June 4, 2027 (the “Debentures”). The Debentures are
guaranteed by Granite and Granite REIT Inc. The Debentures are
Granite’s inaugural Green Bond issuance.
Through a cross currency interest rate swap, Granite LP has
exchanged the Canadian dollar denominated principal and interest
payments for U.S. dollar denominated payments, resulting in an
effective fixed interest rate of 2.964% for the seven-year term of
the Debentures.
The Debentures were offered on an agency basis by a syndicate of
agents co-led by BMO Capital Markets and Scotia Capital. DBRS
Morningstar and Moody’s Investor Service, Inc. have provided
Granite with credit ratings of “BBB” with a stable trend, and
“Baa2” with a stable outlook, respectively, relating to the
Debentures. The Debentures were sold pursuant to a prospectus
supplement dated June 2, 2020 to Granite LP’s base shelf prospectus
dated September 12, 2019.
The Debentures were issued as Green Bonds under Granite’s Green
Bond Framework. Granite LP intends to use the net proceeds from the
Offering to finance or refinance, in whole or in part, expenditures
associated with Eligible Green Projects as described in the Granite
Green Bond Framework, which is available on Granite’s website at
https://granitereit.com/sustainability.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of logistics, warehouse and
industrial properties in North America and Europe. Granite owns
over 90 investment properties representing approximately 40.3
million square feet of leasable area.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators’ Systems for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at www.sedar.com and on
the United States Securities and Exchange Commission’s Electronic
Data Gathering, Analysis and Retrieval System (EDGAR) which can be
accessed at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States,
and securities may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the United States Securities Act of
1933, as amended.
For further information, please see our website at
www.granitereit.com or contact Teresa Neto, Chief Financial
Officer, at 647-925-7560 or Andrea Sanelli, Manager, Legal &
Investor Services, at 647-925-7504.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
“forward-looking statements” or “forward-looking information”
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, statements
regarding Granite’s intended use of the net proceeds of the
Offering to finance or refinance, in whole or in part, expenditures
associated with Eligible Green Projects as described in the Granite
Green Bond Framework, Granite’s intention and ability to make
future investments and acquisitions on satisfactory terms,
and Granite’s plans, goals, strategies, intentions, beliefs,
estimates, costs, objectives, economic performance, expectations,
or foresight or the assumptions underlying any of the foregoing.
Words such as “may”, “would”, “could”, “will”, “likely”, “expect”,
“anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”,
“estimate”, “seek”, “objective” and similar expressions are used to
identify forward-looking statements and forward-looking
information. Forward-looking statements and forward-looking
information should not be read as guarantees of Granite’s intended
use of the net proceeds of the Offering, Granite’s intention and
ability to acquire and develop properties on satisfactory terms, or
other events, performance or results and will not necessarily be
accurate indications of whether or the times at or by which future
events or performance will be achieved. Undue reliance should not
be placed on such statements. Forward-looking statements and
forward-looking information are based on information available at
the time and/or management’s good faith assumptions and analyses
made in light of its perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances,
and are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond Granite’s control,
that could cause actual events or results to differ materially from
such forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the risks set forth in the annual information
form of Granite Real Estate Investment Trust and Granite REIT Inc.
dated March 4, 2020 (the “Annual Information Form”) and
management’s discussion and analysis of results of operations and
financial position for the three months ended March 31, 2020 (the
“Q1 MD&A”). The “Risk Factors” section of the Annual
Information Form and the Q1 MD&A also contain information about
the material factors or assumptions underlying such forward-looking
statements and forward-looking information. Forward-looking
statements and forward-looking information speak only as of the
date the statements and information were made and unless otherwise
required by applicable securities laws, Granite expressly disclaims
any intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200604005695/en/
Teresa Neto, Chief Financial Officer 647-925-7560 or Andrea
Sanelli, Manager, Legal & Investor Services 647-925-7504.
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