Granite REIT Completes Offering of C$500 Million 2.378% Senior Debentures Due 2030
December 18 2020 - 8:56AM
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 2.378% Series 5 senior unsecured debentures due
December 18, 2030 (the “Debentures”). The Debentures are
guaranteed by Granite and Granite REIT Inc.
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 1.045% for the ten-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 LP 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 December 4, 2020 to Granite LP’s amended and
restated base shelf prospectus dated November 26, 2020.
Granite LP intends to use the net proceeds from the Offering to
refinance existing debt, including the redemption of its Series 2
Senior Debentures due 2021, and for general corporate purposes.
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 110 investment properties representing approximately 47
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’ System 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, the use of
the net proceeds of the Offering including the redemption of
Granite LP’s Series 2 Senior Debentures due 2021 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 the use of the net proceeds of the
Offering including the redemption of Granite LP’s Series 2 Senior
Debentures due 2021, 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 September 30, 2020 (“Q3 MD&A”). The “Risk
Factors” section of the Annual Information Form and the “Risks and
Uncertainties” section of the Q3 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201218005384/en/
Teresa Neto Chief Financial Officer 647-925-7560 Andrea Sanelli
Manager, Legal & Investor Services 647-925-7504.
Granite Real Estate Inve... (TSX:GRT.UN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Granite Real Estate Inve... (TSX:GRT.UN)
Historical Stock Chart
From Jul 2023 to Jul 2024