Allied Announces Launch of $500 Million Green Bond Offering
03 August 2021 - 5:43PM
Allied Properties Real Estate Investment Trust
(TSX:AP.UN)(“Allied”) announced today that it has launched an
offering of $500 million aggregate principal amount of series I
senior unsecured debentures (the “Debentures”). The Debentures are
being offered on an agency basis by a syndicate of agents led by
Scotia Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets
Inc. Allied intends to provide further details of the offering,
including pricing information, when available.
The Debentures are Allied’s second green bond
issuance under its previously announced Green Financing Framework,
which is available on Allied’s website at
https://www.alliedreit.com/company/esg/.
“This second green bond financing is an
important step in solidifying our bond market franchise,” said
Michael Emory, President & CEO. “It will enable us to do the
following: (i) fix our interest cost on $494 million of debt
for a term of 10.5 years; (ii) increase the weighted average term
to maturity of our debt from 5.9 years to 7.3 years;
(iii) increase the unencumbered portion of our portfolio to
96%; (iv) improve our interest coverage ratio from 3.3 to 3.5
times; and (v) maintain our net debt as a multiple of
annualized adjusted EBITDA.”
Allied makes this offering pursuant to its base
shelf prospectus dated June 2, 2021. The terms of the offering will
be described in a prospectus supplement to be filed with Canadian
securities regulators.
Allied intends to allocate the net proceeds of
the offering to fund the financing and/or refinancing of eligible
green projects (“Eligible Green Projects”) as described in the
Allied Green Financing Framework (the “Framework”). Prior to
allocation of the net proceeds of the offering to Eligible Green
Projects, Allied intends to use the net proceeds of the offering
(a) to prepay approximately $494 million aggregate principal amount
of first mortgages and (b) for general trust purposes. The net
proceeds will ultimately be allocated to Eligible Green Projects in
accordance with the Framework.
Although Allied intends to allocate an amount
equal to the net proceeds of this offering as described herein, it
will not be an Event of Default under the Series I Indenture if
Allied fails to do so.
About Allied
Allied is a leading owner, manager and developer
of (i) distinctive urban workspace in Canada’s major cities and
(ii) network-dense urban data centres in Toronto that form Canada’s
hub for global connectivity. Allied’s business is providing
knowledge-based organizations with distinctive urban environments
for creativity and connectivity.
Cautionary Statements
Annualized adjusted EBITDA and net debt are not
financial measures defined by International Financial Reporting
Standards (“IFRS”). Please see Allied’s most recent management’s
discussion and analysis (“MD&A”) for a description of these
measures and their reconciliation to financial measures defined by
IFRS, as presented in Allied’s most recent financial statements.
These statements, together with accompanying notes and MD&A,
have been filed on SEDAR, www.sedar.com, and are also
available on Allied’s website, www.alliedreit.com.
This press release may contain forward-looking
statements with respect to Allied including its intended use of the
net proceeds of the offering and impact on interest cost, our pool
of unencumbered properties, our interest coverage ratio, and net
debt as a multiple of annualized adjusted EBITDA. These statements
generally can be identified by use of forward-looking words such as
“may”, “will”, “expect”, “estimate”, “anticipate”, “intends”,
“believe” or “continue” or the negative thereof or similar
variations. The actual results and performance of Allied discussed
herein could differ materially from those expressed or implied by
such statements. Such statements are qualified in their entirety by
the inherent risks and uncertainties surrounding future
expectations, including the effect of the global pandemic and
consequent economic disruption. Important factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under “Risk Factors” in Allied’s Annual Information Form,
which is available at www.sedar.com. These cautionary statements
qualify all forward-looking statements attributable to Allied and
persons acting on Allied’s behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release and the parties have no obligation to update such
statements.
The Debentures being offered 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.
For more information, please contact:
Michael Emory, President & CEO (416)
977-0643memory@alliedreit.com
Cecilia Williams, Executive Vice President & CFO(416)
977-9002cwilliams@alliedreit.com
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