SmartCentres Real Estate Investment Trust has closed $450 million in senior unsecured debenture financing, consisting of an additional $150 million of its Series AC debentures and a new $300 million Series AE issuance.
The additional Series AC securities carry an annual interest rate of 3.599% and mature on June 12, 2029. The new Series AE debentures carry an annual rate of 4.795% and mature on January 15, 2032.
Combined with $250 million of Series AC debentures previously issued, SmartCentres now has $400 million in aggregate principal amount of Series AC debt outstanding.
The Canadian REIT plans to use the net proceeds from the latest financing to refinance existing debt, repay amounts outstanding under its revolving credit facility, repay mortgages, and support general corporate purposes. 1
The offering was completed through a syndicate led by Scotiabank, CIBC Capital Markets, Desjardins Securities, RBC Capital Markets, and TD Securities as joint bookrunners. National Bank Financial, Mizuho Securities, Beacon Securities, and Casgrain & Company served as co-managers.
Morningstar DBRS assigned the debentures a BBB credit rating with a stable trend.
The financing adds longer-duration unsecured capital to SmartCentres’ balance sheet while giving the company additional flexibility to address existing debt and mortgage obligations.
SmartCentres is one of Canada’s largest fully integrated real estate investment trusts. Its portfolio includes 201 properties across the country spanning value-oriented retail, purpose-built rental housing, office space, and self-storage.
The trust reported approximately $12.1 billion in assets and 35.5 million square feet of leasable space. Its portfolio was 98.1% occupied or committed, with properties located across approximately 3,500 acres of owned land in Canada.
The new financing also supports SmartCentres as it continues development and intensification initiatives across a portfolio that includes major retail properties as well as increasingly diversified mixed-use real estate.
