DBRS Limited (DBRS Morningstar) assigned ratings of BBB with a Stable trend to Choice Properties Real Estate Investment Trust’s (Choice Properties or the Trust) $400 million 2.981% Series N Senior Unsecured Debentures due March 4, 2030 and $100 million 3.827% Series O Senior Unsecured Debentures due March 4, 2050 (together, the Debentures). The ratings assigned to these newly issued debt instruments are based on the rating of the already-outstanding series of Senior Unsecured Debentures and DBRS Morningstar’s review of information received as of March 3, 2020.
The Debentures are direct senior unsecured obligations of Choice Properties and rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust. The Debentures are guaranteed by Choice Properties Limited Partnership (rated BBB with Stable trend by DBRS Morningstar), Choice Properties GP Inc., and any other wholly owned subsidiaries of Choice Properties.
DBRS Morningstar understands that the Trust will use net proceeds from the offering to repay existing indebtedness, including to fully redeem the $250 million aggregate principal amount of Choice Properties’ 2.297% Series E Senior Unsecured Debentures due September 14, 2020, and to repay a portion of the balance drawn on the Trust’s credit facilities.
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Entities in the Real Estate Industry, DBRS Morningstar Criteria: Guarantees and Other Forms of Support, and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships, which can be found on dbrs.com under Methodologies & Criteria.
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