Cominar offers $150 million in debentures, raising eyebrows in real estate sector
- Cominar announced an offering of $150 million in senior unsecured debentures on December 6, 2024.
- The offering will close around December 18, 2024, and the proceeds will be used to redeem existing debentures.
- This move highlights Cominar's strategy to optimize its financial position while adhering to regulatory requirements.
In Montreal, Canada, on December 6, 2024, Cominar Real Estate Investment Trust revealed its plan to offer $150 million principal amount of 7.80% Series 13 senior unsecured debentures. These debentures will be issued at a price of $1,000 for each $1,000 principal amount and are scheduled to mature on December 18, 2027. The interest for the Series 13 Debentures will be payable semi-annually. The offering is expected to close around December 18, 2024, and will occur exclusively through a private placement in Canada. The lead agent for this offering is Desjardins Securities Inc. Cominar intends to utilize the net proceeds from this offering, combined with available liquidity, to fully redeem its Series 12 senior unsecured debentures scheduled to mature on May 5, 2025. This strategic financial move reflects Cominar's commitment to optimizing its capital structure while positioning itself for future growth. It is crucial to note that the Series 13 Debentures are not registered under the United States Securities Act of 1933, indicating that they will not be offered or sold within the United States or to U.S. persons, thereby adhering to specific legal requirements regarding the offering.