Allied Announces Pricing of $500 Million Green Bond Offering
03 August 2021 - 9:11PM
Allied Properties Real Estate Investment Trust (TSX:AP.UN)
(“Allied”) announced today that it has priced its previously
announced offering, and has agreed to issue $500 million aggregate
principal amount of series I senior unsecured debentures (the
“Debentures”). The Debentures will bear interest at a rate of
3.095% per annum and will mature on February 6, 2032. 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. The offering is expected to close on or about
August 6, 2021. DBRS Limited has provided Allied with a provisional
credit rating of “BBB” with a “Stable” trend relating to the
Debentures. Moody’s Investors Service, Inc. has provided Allied
with a provisional credit rating of “Baa2” relating to the
Debentures.
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/.
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
This press release may contain forward-looking
statements with respect to Allied including its intended use of the
net proceeds of the offering. 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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