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Granite REIT Completes C$800 Million Offering of Senior Unsecured Debentures and Repayment of Its US$400 Million Term Loan

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Granite Real Estate Investment Trust (TSX: GRT.UN / NYSE: GRP.U) has successfully completed a C$800 million offering of senior unsecured debentures through its subsidiary Granite REIT Holdings Partnership. The offering consists of:

1. C$250 million of 3.999% Series 8 debentures due October 4, 2029
2. C$550 million of 4.348% Series 9 debentures due October 4, 2031

Through a cross currency interest rate swap, the effective fixed interest rate for the Series 8 debentures is 3.494%. Granite has also repaid its US$400 million senior unsecured non-revolving term facility using the offering's net proceeds. The remaining funds will be used to refinance existing debt, including a US$185 million facility due December 19, 2024, and for general corporate purposes.

Granite Real Estate Investment Trust (TSX: GRT.UN / NYSE: GRP.U) ha completato con successo un'offerta di C$800 milioni di obbligazioni senior non garantite tramite la sua controllata Granite REIT Holdings Partnership. L'offerta consiste in:

1. C$250 milioni di obbligazioni Serie 8 al 3,999% in scadenza il 4 ottobre 2029
2. C$550 milioni di obbligazioni Serie 9 al 4,348% in scadenza il 4 ottobre 2031

Attraverso uno swap di tasso di interesse in valute diverse, il tasso di interesse fisso effettivo per le obbligazioni della Serie 8 è del 3,494%. Granite ha anche rimborsato il suo prestito senior non garantito a termine di 400 milioni di dollari USA utilizzando il netto dell'offerta. I fondi rimanenti saranno utilizzati per rifinanziare il debito esistente, compreso un prestito di 185 milioni di dollari USA in scadenza il 19 dicembre 2024, e per scopi aziendali generali.

Granite Real Estate Investment Trust (TSX: GRT.UN / NYSE: GRP.U) ha completado con éxito una emisión de C$800 millones de debentures senior no garantizados a través de su subsidiaria Granite REIT Holdings Partnership. La emisión consiste en:

1. C$250 millones de debentures Serie 8 al 3,999% con vencimiento el 4 de octubre de 2029
2. C$550 millones de debentures Serie 9 al 4,348% con vencimiento el 4 de octubre de 2031

Mediante un swap de tasas de interés en monedas cruzadas, la tasa de interés fija efectiva para los debentures de la Serie 8 es del 3,494%. Granite también ha reembolsado su préstamo senior no garantizado a plazos de 400 millones de dólares estadounidenses utilizando el producto neto de la emisión. Los fondos restantes se utilizarán para refinanciar la deuda existente, incluyendo una línea de crédito de 185 millones de dólares estadounidenses que vence el 19 de diciembre de 2024, y para fines corporativos generales.

Granite Real Estate Investment Trust (TSX: GRT.UN / NYSE: GRP.U)는 자회사를 통해 C$800 백만의 선순위 무담보 채권 발행을 성공적으로 완료했습니다. Granite REIT Holdings Partnership에서 발행하였습니다. 발행 내용은 다음과 같습니다:

1. 3.999% 시리즈 8 채권 C$250 백만, 2029년 10월 4일 만기
2. 4.348% 시리즈 9 채권 C$550 백만, 2031년 10월 4일 만기

교차 통화 이자율 스와프를 통해 시리즈 8 채권에 대한 유효 고정 이자율은 3.494%입니다. Granite는 또한 이 자금으로 4억 달러의 선순위 무담보 대출을 상환했습니다. 남은 자금은 기존 부채를 재정리하는 데 사용될 예정이며, 여기에는 2024년 12월 19일 만기인 1억 8500만 달러의 대출이 포함됩니다. 대부분은 일반 기업 용도로 사용됩니다.

Granite Real Estate Investment Trust (TSX : GRT.UN / NYSE : GRP.U) a réussi à réaliser une émission de C$800 millions d'obligations senior non garanties par le biais de sa filiale Granite REIT Holdings Partnership. L'émission se compose de :

1. C$250 millions d'obligations de la série 8 à 3,999 % arrivant à échéance le 4 octobre 2029
2. C$550 millions d'obligations de la série 9 à 4,348 % arrivant à échéance le 4 octobre 2031

Grâce à un swap de taux d'intérêt en devises croisées, le taux d'intérêt fixe effectif pour les obligations de la série 8 est de 3,494 %. Granite a également remboursé sa ligne de crédit senior non garantie de 400 millions de dollars américain en utilisant le produit net de l'émission. Les fonds restants seront utilisés pour refinancer la dette existante, y compris une facility de 185 millions de dollars américains arrivant à échéance le 19 décembre 2024, et pour des besoins généraux de l'entreprise.

Granite Real Estate Investment Trust (TSX: GRT.UN / NYSE: GRP.U) hat erfolgreich eine C$800 Millionen Ausgabe von seniore, unbesicherten Anleihen über seine Tochtergesellschaft Granite REIT Holdings Partnership abgeschlossen. Die Ausgabe umfasst:

1. C$250 Millionen der 3,999% Serie 8 Anleihen, fällig am 4. Oktober 2029
2. C$550 Millionen der 4,348% Serie 9 Anleihen, fällig am 4. Oktober 2031

Durch einen Währungs-Swap beträgt der effektive feste Zinssatz für die Serie 8 Anleihen 3,494%. Granite hat auch seinen 400 Millionen US-Dollar hohen, unbesicherten, nicht revolvierenden Kredit mit den Nettoerlösen aus der Anleihe ausgeglichen. Die verbleibenden Mittel werden zur Refinanzierung bestehender Schulden verwendet, einschließlich einer 185 Millionen US-Dollar hohen Finanzierung, die am 19. Dezember 2024 fällig wird, sowie für allgemeine Unternehmenszwecke.

Positive
  • Successful completion of C$800 million senior unsecured debentures offering
  • Repayment of US$400 million term loan, improving debt structure
  • Effective fixed interest rate of 3.494% for Series 8 debentures through currency swap
  • Refinancing of existing debt, including upcoming US$185 million facility
Negative
  • None.

TORONTO--(BUSINESS WIRE)-- Granite Real Estate Investment Trust (“Granite” or the “REIT”) (TSX: GRT.UN / NYSE: GRP.U) announced today that its wholly owned subsidiary Granite REIT Holdings Limited Partnership (“Granite LP”) has completed its previously announced offering (the “Offering”) of C$800 million aggregate principal amount of senior unsecured debentures in two series. The Offering includes (i) C$250 million aggregate principal amount of 3.999% Series 8 senior unsecured debentures due October 4, 2029 (the “October 2029 Debentures”); and (ii) C$550 million aggregate principal amount of 4.348% Series 9 senior unsecured debentures due October 4, 2031 (collectively, the “Debentures”). The Debentures are guaranteed by Granite and Granite REIT Inc.

Through a cross currency interest rate swap, Granite LP has exchanged the Canadian dollar denominated principal and interest payments related to the October 2029 Debentures for Euro denominated principal and interest payments, resulting in an effective fixed interest rate of 3.494% for the five year term of the October 2029 Debentures.

Granite also announced today that Granite LP has repaid in full its US$400 million senior unsecured non-revolving term facility, which had a maturity date of September 15, 2025 (the “2025 Term Loan”), using the net proceeds from the Offering. The 2025 Term Loan was fully prepayable without penalty.

Granite LP intends to use the remaining net proceeds from the Offering to refinance existing debt, including its US$185 million senior unsecured non-revolving term facility, to be repaid upon maturity on December 19, 2024, and for general corporate purposes. Prior to such use, the remaining net proceeds may be initially used, in part or in full, for investments in bank deposits or other cash equivalents, in each case in accordance with Granite’s internal liquidity management policies.

ABOUT GRANITE

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 143 investment properties representing approximately 63.3 million square feet of leasable area.

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 the United States, and the Debentures may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended.

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, Associate 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, the use of the net proceeds of the Offering and 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 use of the net proceeds of the Offering, or other 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 six month periods ended June 30, 2024 (“Q2 MD&A”). The “Risk Factors” section of the Annual Information Form and the “Risks and Uncertainties” section of the Q2 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.

Teresa Neto, Chief Financial Officer

647-925-7560

or

Andrea Sanelli, Associate Director, Legal & Investor Services

647-925-7504

Source: Granite Real Estate Investment Trust

FAQ

What is the total value of Granite REIT's recent debenture offering?

Granite REIT completed a C$800 million offering of senior unsecured debentures in two series.

What are the interest rates for Granite REIT's (GRP.U) new debentures?

The Series 8 debentures have a 3.999% interest rate, while the Series 9 debentures have a 4.348% interest rate.

How did Granite REIT (GRP.U) use the proceeds from its debenture offering?

Granite REIT used the proceeds to repay a US$400 million term loan and plans to refinance existing debt, including a US$185 million facility due in December 2024.

What is the effective interest rate for Granite REIT's Series 8 debentures after the currency swap?

After the cross currency interest rate swap, the effective fixed interest rate for the Series 8 debentures is 3.494%.

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