Choice Properties Completes $300 Million Debenture Issuance, Enhancing Liquidity and Sustainability

Choice Properties Real Estate Investment Trust (TSX: CHP.UN) has successfully completed a $300 million issuance of Series V senior unsecured debentures, further strengthening its financial position and commitment to sustainability. The debentures, bearing an interest rate of 4.293% per annum, were issued to repay certain amounts drawn on the Trust's revolving credit facility and for general business purposes.



The issuance of the debentures has positively impacted Choice Properties' credit rating and borrowing costs in the long term. Morningstar DBRS has provided the Debentures with a credit rating of "BBB" (high) with a "stable" trend, and S&P Global Ratings has provided the Debentures with a credit rating of "BBB+". These investment-grade ratings indicate that the Trust's financial health is considered strong, which can help attract investors and lower the cost of future financing.

The net proceeds from the issuance can be used for various purposes that may affect the Trust's future growth. The Trust has stated that it intends to use the net proceeds to repay certain amounts drawn on its revolving credit facility, which will improve its liquidity position. Additionally, the Trust may use the funds for general business purposes, such as acquisitions, development, capital expenditures, or green financing projects.

In conclusion, the issuance of $300 million aggregate principal amount of series V senior unsecured debentures by Choice Properties Real Estate Investment Trust (TSX: CHP.UN) has positively influenced the Trust's credit rating and borrowing costs in the long term. The Trust's investment-grade credit ratings and lower interest rate on the newly issued debentures demonstrate its commitment to maintaining a strong financial position and attracting investors. The net proceeds from the issuance can be used to repay debt, fund acquisitions, development, capital expenditures, and green financing projects, driving the Trust's future growth and sustainability.