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TORONTO, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Allied Properties Real Estate Investment Trust (“Allied”) (TSX:AP.UN) announced today that it has completed its previously announced offering, on a private placement basis in certain provinces of Canada (the “Offering”), of $450 million aggregate principal amount of series K senior unsecured debentures that will bear interest at a rate of 4.808% per annum and will mature on February 24, 2029 (the “Debentures”).
The Debentures were issued under Allied’s Green Financing Framework (the “Framework”), which is available on Allied’s website at https://www.alliedreit.com/company/esg/.
The Debentures were sold at par with a yield of 4.808% per annum on an agency basis by a syndicate of agents co-led by Scotiabank, RBC Capital Markets and CIBC Capital Markets, and including BMO Capital Markets and TD Securities. Allied intends to allocate the net proceeds of the Offering toward the financing and/or refinancing of Eligible Green Projects, in line with the Framework. Before allocating the proceeds to these projects, Allied intends to utilize the funds for the full repayment of the construction loan on 19 Duncan Street in Toronto (“19 Duncan”), with the balance to be applied toward the repayment of Allied's series C senior unsecured debentures due April 21, 2025 (the “Series C Debentures”).
The redemption of the Series C Debentures is expected to be completed on February 25, 2025 (the “Redemption Date”), pursuant to a notice of redemption distributed to holders of the Series C Debentures dated February 13, 2025. The Series C Debentures will be redeemed effective on the Redemption Date at a price equal to $1,000 per $1,000 principal amount of Series C Debentures plus accrued and unpaid interest to the Redemption Date totaling $2,526,338. The aggregate redemption price payable by Allied on the Redemption Date is $202,526,338.
The full repayment of the construction loan on 19 Duncan is expected to be completed on the Redemption Date, pursuant to a repayment notice delivered to the lenders dated February 14, 2025. The aggregate repayment payable by Allied on the Redemption Date is $262,492,777.
The Debentures are rated “BBB” with a Negative trend by Morningstar DBRS. The Debentures rank equally with all other unsecured indebtedness of Allied that has not been subordinated.
The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.