Granite REIT Completes C$300 Million Offering of Senior Unsecured Debentures and Repayment of Its C$300 Million Term Loan
Granite REIT has announced the completion of two significant financial transactions. First, through its subsidiary Granite REIT Holdings Partnership, the company has completed a C$300 million offering of Series 10 senior unsecured debentures. These debentures will mature on December 11, 2026, and bear interest at Daily Compounded CORRA plus 0.77% per annum, paid quarterly.
Through an existing cross currency interest rate swap, the company has converted the Canadian dollar principal and floating rate payments into Euro denominated principal and fixed payments, resulting in an effective fixed interest rate of 0.27% per annum. Additionally, Granite LP has fully repaid its C$300 million senior unsecured non-revolving term facility that was due to mature in December 2026, using proceeds from the new debenture offering.
Granite REIT ha annunciato il completamento di due importanti operazioni finanziarie. In primo luogo, attraverso la sua controllata Granite REIT Holdings Partnership, l'azienda ha completato un emissione di debentures senior non garantiti da 300 milioni di dollari canadesi. Questi debentures scadranno l'11 dicembre 2026 e maturano interessi a un tasso di CORRA composto giornalmente più 0,77% per anno, pagati trimestralmente.
Attraverso uno swap di tasso d'interesse in valuta già esistente, l'azienda ha convertito il capitale in dollari canadesi e i pagamenti a tasso variabile in capitale denominato in euro e pagamenti fissi, risultando in un tasso d'interesse fisso effettivo di 0,27% per anno. Inoltre, Granite LP ha completamente rimborsato il suo prestito senior non garantito a termine di 300 milioni di dollari canadesi, il quale era in scadenza a dicembre 2026, utilizzando i proventi della nuova emissione di debentures.
Granite REIT ha anunciado la finalización de dos importantes transacciones financieras. Primero, a través de su filial Granite REIT Holdings Partnership, la empresa ha completado una emisión de debentures senior no garantizados por 300 millones de dólares canadienses. Estos debentures vencerán el 11 de diciembre de 2026 y devengarán intereses a un tipo de CORRA compuesto diariamente más 0,77% anual, pagados de forma trimestral.
A través de un swap de tasa de interés en moneda cruzada existente, la empresa ha convertido el capital en dólares canadienses y los pagos a tipo variable en capital denominado en euros y pagos fijos, resultando en una tasa de interés fija efectiva del 0,27% anual. Además, Granite LP ha reembolsado completamente su préstamo senior no garantizado a plazo de 300 millones de dólares canadienses, que debía vencer en diciembre de 2026, utilizando los ingresos de la nueva emisión de debentures.
Granite REIT는 두 가지 중요한 금융 거래의 완료를 발표했습니다. 우선, 자회사의 Granite REIT Holdings Partnership를 통해, 회사는 3억 캐나다 달러 규모의 시리즈 10 고위험 담보부 채권을 발행했습니다. 이 채권은 2026년 12월 11일 만기되며, 매일 복리로 계산된 CORRA에 연 0.77%를 더한 금리에 해당하며, 분기마다 지급됩니다.
기존의 통화 스와프를 활용해, 회사는 캐나다 달러로 된 원금과 변동금리 지불액을 유로로 된 원금과 고정 지불액으로 전환하여 연 0.27%의 실질 고정 금리를 실현했습니다. 또한, Granite LP는 2026년 12월에 만기가 도래할 예정이었던 3억 캐나다 달러의 비회전선 senior unsecured 채무를 새로운 채권 발행에서 발생한 수익으로 모두 상환했습니다.
Granite REIT a annoncé l'achèvement de deux transactions financières importantes. Tout d'abord, par l'intermédiaire de sa filiale Granite REIT Holdings Partnership, l'entreprise a complété une émission de débentures senior non garanties d'un montant de 300 millions de dollars canadiens. Ces débentures arriveront à échéance le 11 décembre 2026 et porteront un intérêt à un taux de CORRA composé quotidiennement plus 0,77% par an, payé trimestriellement.
Grâce à un swap de taux d'intérêt en devises déjà existant, l'entreprise a converti le capital en dollars canadiens et les paiements à taux variable en capital libellé en euros et paiements fixes, ce qui a entraîné un taux d'intérêt fixe effectif de 0,27% par an. De plus, Granite LP a entièrement remboursé son prêt à terme senior non renouvelable de 300 millions de dollars canadiens, qui devait arriver à échéance en décembre 2026, en utilisant les produits de la nouvelle émission de débentures.
Granite REIT hat den Abschluss von zwei bedeutenden Finanztransaktionen bekannt gegeben. Zunächst hat das Unternehmen durch seine Tochtergesellschaft Granite REIT Holdings Partnership eine Emission von 300 Millionen CAD an nicht besicherten Senior-Anleihen abgeschlossen. Diese Anleihen laufen am 11. Dezember 2026 aus und verzinsen sich mit einem Satz von täglich kumulierten CORRA plus 0,77% pro Jahr, die vierteljährlich gezahlt werden.
Durch einen bestehenden Cross-Currency-Interest-Rate-Swap hat das Unternehmen das in kanadischen Dollar denominiertes Kapital und die variable Zinszahlungen in in Euro denominiertes Kapital und feste Zahlungen umgewandelt, was zu einem effektiven festen Zinssatz von 0,27% pro Jahr führt. Darüber hinaus hat Granite LP seine nicht revolvierende Senior-Anleihe mit einer Laufzeit von 300 Millionen CAD, die im Dezember 2026 fällig wurde, vollständig zurückgezahlt, indem es die Erlöse aus der neuen Anleiheemission verwendet hat.
- Successful refinancing of C$300 million debt with same maturity date
- Achieved lower effective interest rate of 0.27% through currency swap
- Strategic currency hedge protecting against exchange rate fluctuations
- Maintains same level of debt with no reduction in leverage
Insights
This refinancing transaction by Granite REIT represents a sophisticated approach to debt management that warrants careful analysis. The replacement of a
The implementation of a cross-currency interest rate swap transforming Canadian dollar obligations into Euro-denominated payments with a fixed rate of
- Interest rate risk mitigation through conversion to a fixed rate
- Currency risk management aligning with their European real estate portfolio
- Potential cost savings given the typically lower interest rate environment in the Eurozone
The timing of this refinancing, maintaining the same 2026 maturity date, suggests a proactive approach to liability management rather than a reactive one. By executing this transaction now, Granite has effectively locked in favorable terms while maintaining flexibility in their debt structure. The use of CORRA (Canadian Overnight Repo Rate Average) as the base rate aligns with global shifts away from LIBOR, demonstrating forward-thinking treasury management.
From a balance sheet perspective, this transaction is leverage-neutral but potentially enhances the REIT's interest coverage ratios through the lower effective interest rate. The quarterly interest payment structure provides regular, predictable cash flow obligations, which is beneficial for treasury operations and cash flow management.
Through an existing cross currency interest rate swap, Granite LP has exchanged the Canadian dollar denominated principal and floating rate interest payments related to the Debentures for Euro denominated principal and fixed interest payments, resulting in an effective fixed interest rate of
Granite also announced today that Granite LP has repaid in full, without penalty, its
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in
OTHER INFORMATION
Copies of financial data and other publicly filed documents about Granite are available through the internet on SEDAR+ which can be accessed at www.sedarplus.ca and on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in
For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at 647-925-7560 or Andrea Sanelli, Senior Director, Legal & Investor Services, at 647-925-7504.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation, including the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, Granite’s plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, economic performance, expectations, or foresight or the assumptions underlying any of the foregoing. Words such as “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “seek”, “objective” and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of events, performance or results and will not necessarily be accurate indications of whether or the times at or by which future events or performance will be achieved. Undue reliance should not be placed on such statements. Forward-looking statements and forward-looking information are based on information available at the time and/or management’s good faith assumptions and analyses made in light of its perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances, and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to, the risks set forth in the annual information form of Granite Real Estate Investment Trust and Granite REIT Inc. dated February 28, 2024 (the “Annual Information Form”) and management’s discussion and analysis of results of operations and financial position for the three and nine month periods ended September 30, 2024 (“Q3 MD&A”). The “Risk Factors” section of the Annual Information Form and the “Risks and Uncertainties” section of the Q3 MD&A also contain information about the material factors or assumptions underlying such forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise.
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Teresa Neto, Chief Financial Officer
647-925-7560
Andrea Sanelli, Senior Director, Legal & Investor Services
647-925-7504
Source: Granite Real Estate Investment Trust
FAQ
What is the size and interest rate of Granite REIT's (GRP.U) new debenture offering?
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What currency swap arrangement did Granite REIT (GRP.U) implement for the new debentures?
