SmartCentres Closes $300 Million Debenture Issue

SmartCentres Real Estate Investment Trust (SmartCentres) has successfully closed a private placement of $300 million aggregate principal amount of 4.737% Series AB senior unsecured debentures. The debentures, which mature on August 5, 2031, were offered on an agency basis by a syndicate of agents led by Scotiabank, CIBC Capital Markets, Desjardins Securities, RBC Capital Markets, and TD Securities as joint bookrunners, with National Bank Financial, Mizuho Securities, BMO Capital Markets, and Casgrain as co-managers. Morningstar DBRS has provided SmartCentres with a provisional credit rating of BBB with a stable trend relating to the debentures.

The net proceeds from the sale of the Series AB debentures will be used by SmartCentres to refinance existing debt, including the repayment of its $160 million Series N senior unsecured debentures due February 6, 2025, and the repayment of its revolving credit line. The remaining proceeds will be used for general corporate purposes.



The issuance of the Series AB debentures allows SmartCentres to improve its financial flexibility, reduce its reliance on short-term financing, and enhance its liquidity position. The stable credit rating provided by Morningstar DBRS indicates that the Trust has a moderate level of credit risk and a sufficient ability to meet its financial obligations, including the repayment of the debentures.

In conclusion, the successful closure of the $300 million Series AB senior unsecured debenture issue by SmartCentres demonstrates the Trust's ability to access capital markets and strengthen its financial position. The refinancing of existing debt and the improved credit rating will enable SmartCentres to better manage its cash flow, invest in growth opportunities, and support its long-term growth plans.