CT Real Estate Investment Trust (CT REIT) has recently concluded a highly successful private placement issuance of series I senior unsecured debentures, totaling $250 million. This latest offering is a significant milestone for CT REIT and demonstrates its ability to raise capital effectively.
The series I debentures have a term of 4.6 years and offer a coupon rate of 5.828% per annum. Although these debentures are unsecured, they represent direct senior unsecured obligations of CT REIT. This means that investors have a lower priority in recovering their investment in the event of default or bankruptcy compared to secured debenture holders. However, the strong credit rating of “BBB” assigned by S&P Global Ratings and DBRS Morningstar provides reassurance regarding the creditworthiness of CT REIT.
The proceeds from the private placement will primarily be used to repay short-term debts, bolstering the financial position of CT REIT. Any remaining balance will be allocated towards general business purposes, enhancing the company’s flexibility to pursue growth opportunities.
It is crucial to note that the series I debentures have not been registered under the United States Securities Act of 1933, thereby limiting their availability in the United States market. However, this private placement issuance highlights CT REIT’s focus on the Canadian market, where it primarily owns and manages income-producing commercial properties across various sectors.
Looking ahead, CT REIT aims to utilize the raised capital to fuel its growth strategy and further enhance its portfolio. Investors interested in detailed risk factors and forward-looking information can access comprehensive reports on CT REIT’s website at www.ctreit.com and on SEDAR+ at www.sedarplus.ca.
For media inquiries, please contact Joscelyn Dosanjh at 416-845-8392 or [email protected] For investor-related information, reach out to Lesley Gibson at 416-480-8566 or [email protected]
Preguntas frecuentes
¿Qué es una oferta de debentures?
Una oferta de debentures se refiere a la emisión de valores de deuda no garantizados por una compañía u organización para recaudar capital. Estos debentures generalmente ofrecen una tasa de interés fija y una fecha de vencimiento predeterminada.
¿Qué significa que un debenture sea “no garantizado”?
Cuando se dice que un debenture es “no garantizado”, significa que no cuenta con un respaldo específico de colateral o activos. En caso de incumplimiento o quiebra, los tenedores de debentures no garantizados tienen una prioridad más baja para recuperar su inversión en comparación con los tenedores de debentures garantizados.
¿Cómo se califican los debentures?
Los debentures son calificados por agencias de calificación crediticia, como S&P Global Ratings y DBRS Morningstar, para evaluar su solvencia crediticia. Las calificaciones indican la probabilidad de pago oportuno del capital e intereses. Calificaciones más altas, como “BBB”, representan un menor riesgo de incumplimiento en comparación con calificaciones más bajas.