Allied Announces Closing of $500 Million Green Bond Offering
06 August 2021 - 2:14PM
Allied Properties Real Estate Investment Trust
(TSX:AP.UN)(“Allied”) announced today that it has closed its
previously announced offering of $500 million aggregate principal
amount of series I senior unsecured debentures (the “Debentures”).
The Debentures bear interest at a rate of 3.095% per annum and
mature on February 6, 2032. The Debentures were offered on an
agency basis by a syndicate of agents led by Scotia Capital Inc.,
BMO Nesbitt Burns Inc. and CIBC World Markets Inc. DBRS Limited and
Moody’s Investors Service, Inc. provided Allied with credit ratings
of “BBB” with a “Stable” trend and “Baa2”, respectively, relating
to the Debentures. The Debentures were sold pursuant to a
prospectus supplement dated August 3, 2021 to Allied’s base shelf
prospectus dated June 2, 2021.
The Debentures are Allied’s second Green Bond
issuance under its previously announced Green Financing Framework
(the “Framework”),which is available on Allied’s website at
https://www.alliedreit.com/company/esg/.
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
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 the 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 and
allocation 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 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 R. Emory, President & CEO (416)
977-0643memory@alliedreit.com
Cecilia C. Williams, Executive Vice President & CFO(416)
977-9002cwilliams@alliedreit.com
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