DBRS Limited (DBRS Morningstar) finalized its provisional ratings of BBB (low) on Summit Industrial Income Real Estate Investment Trust’s (Summit or the REIT) Issuer Rating and $250 million 2.15% Series A Senior Unsecured Debentures, due September 17, 2025 (the Series A Debentures). Both trends are Stable.
The Series A Debentures are guaranteed by select subsidiaries of Summit, are direct senior unsecured obligations of the REIT, and rank equally and rateably with all other debt securities and with all other unsecured and unsubordinated indebtedness of the REIT, except to the extent prescribed by law. DBRS Morningstar understands that the net proceeds of the offering will be used to repay existing indebtedness under the November 2019 bridge credit agreement, to fund future acquisitions, and for general trust purposes.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Entities in the Real Estate Industry (June 4, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at email@example.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
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