SmartCentres Places $450 Million in Series AC and AE Debentures

what happened

Canadian REIT SmartCentres (TSX: SRU.UN) said it has finished a private placement covering an extra $150 million of 3.599% Series AC debentures and a new $300 million issue of 4.795% Series AE debentures. The details come from the company's press release, distributed through Business Wire.

The Series AC debentures mature on June 12, 2029, while the Series AE debentures mature on January 15, 2032. Including the $250 million issued earlier, outstanding Series AC debentures now total $400 million. Five banks, including Scotiabank and CIBC Capital Markets, acted as joint bookrunners on a sale made on an agency basis, with National Bank Financial and Mizuho among the co-managers.

Net proceeds will go toward refinancing existing debt, paying down the revolving credit facility and mortgages, and general corporate needs. Morningstar DBRS assigned a BBB rating with a stable outlook to the notes. The securities have not been registered under the US Securities Act of 1933 and cannot be sold to US persons without an exemption.

why it matters

For investors in Canadian REIT debt, the deal shows that SmartCentres can still raise a sizable amount in the bond market, with $450 million placed under a BBB rating and maturities running from 2029 to 2032. The market will watch how the proceeds reshape the company's debt structure.

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