Allied Properties announces closing of $300M offering of 3.394% series D senior unsecured debentures

Allied Properties Real Estate Investment Trust (TSX:AP.UN) has closed its previously announced offering of $300 million aggregate principal amount of series D senior unsecured debentures (the “Debentures”). The Debentures bear interest at a rate of 3.394% per annum and mature on August 15, 2029. 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” (low) with a “Positive” trend and “Baa3”, respectively, relating to the Debentures. The Debentures were sold pursuant to a prospectus supplement dated August 6, 2019 to Allied’s base shelf prospectus dated November 27, 2018.

Allied intends to use the net proceeds of the offering to redeem its $225,000,000 aggregate principal amount of 3.748% series A senior unsecured debentures due May 13, 2020 (the “Series A Debentures”) in full on August 16, 2019, as announced in a press release of Allied dated August 6, 2019, with the remainder to be used for general trust purposes.

Allied was represented by Aird & Berlis LLP in Toronto, with a team including Margaret Nelligan, Sherri Altshuler, Anne Miatello, Melanie Cole, Liam Tracey-Raymont and Amy Marcen-Gaudaur (Corporate and Securities), Mike Smith, Neill Kalvin and Zale Skolnik (Real Estate) and Barbara Worndl (Tax).

Stikeman Elliott LLP represented a syndicate of agents led by Scotia Capital Inc. (and included BMO Nesbitt Burns Inc. and CIBC World Markets Inc. DBRS Limited and Moody’s Investors Service, Inc.) in it’s dealing of Allied Properties Real Estate Investment Trust’s offering of C$300 million aggregate principal amount of series D senior unsecured debentures. The Debentures bear interest at a rate of 3.394% per annum and mature on August 15, 2029. The Debentures were offered on an agency basis. DBRS Limited and Moody’s Investors Service, Inc. provided Allied with credit ratings of “BBB” (low) with a “Positive” trend and “Baa3”, respectively, relating to the Debentures. The Debentures were sold pursuant to a prospectus supplement dated August 6, 2019 to Allied’s base shelf prospectus dated November 27, 2018. Legal team: David Weinberger, Colin Burn, Benjamin Jain, Joseph Bricker and Christopher Sullivan (Securities) and Kevin Chen (Real Estate).

BCF Business Law was responsible for the translation of the prospectus (and documents incorporated by reference) as well as the Quebec securities and real estate aspects.