TORONTO--(BUSINESS WIRE)--Dream Industrial REIT (TSX: DIR.UN) (the “Trust” or “Dream Industrial REIT”) announced today that it has priced a private placement of senior unsecured debentures (the "Offering") consisting of an additional issuance of C$200 million aggregate principal amount of the 5.383% Senior Unsecured Debentures, Series F maturing on March 22, 2028 (the "Series F Debentures").
The Series F Debentures are being offered on an agency basis by a syndicate of agents led by TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc., and including CIBC World Markets Inc. and Desjardins Securities Inc. The Series F Debentures are being offered on a private placement basis in each of the provinces of Canada in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
The Series F Debentures will be issued at a price equal to $1,004.51 per $1,000 principal amount, with an effective yield to maturity of 5.259% and bear interest at a rate of 5.383% per annum, and will mature on March 22, 2028. The Series F Debentures will have the same terms and conditions, and constitute part of the same series, as the $200 million aggregate principal amount of the Series F Debentures issued by the Trust on March 22, 2023, except for their date of issue and price to the public and except they will not initially be fungible with the Series F Debentures issued on March 22, 2023. The Series F Debentures offered hereby will initially have a different CUSIP number from the Series F Debentures issued on March 22, 2023 but on or about May 5, 2024, the Series F Debentures offered hereby will become fungible with, form part of a single series with, and have the same CUSIP number as the Series F Debentures issued on March 22, 2023. Interest is payable on the Series F Debentures on March 22 and September 22 of each year, commencing on March 22, 2024. The first interest payment on March 22, 2024 will include accrued and unpaid interest for the period from September 22, 2023 to, but excluding, March 22, 2024. The Series F Debentures will be direct senior unsecured obligations of the Trust and will rank equally and ratably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law. The closing of the Offering is expected to take place on January 4, 2024.
The Series F Debentures are expected to be rated BBB with a Stable Trend by DBRS Limited. The Trust intends to use the net proceeds from the Offering to repay existing indebtedness and for general trust purposes.
The Series F Debentures have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer or sale of the Series F Debentures in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Series F Debentures will not be listed on any stock exchange and there will be no market for such securities. The Series F Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States and may not be offered or sold to other persons who are not residents of a province of Canada.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series F Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Dream Industrial Real Estate Investment Trust
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at September 30, 2023, Dream Industrial REIT owns, manages and operates a portfolio of 322 industrial assets totaling approximately 70.6 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. Dream Industrial REIT’s goal is to deliver strong total returns to its unitholders through secure cash flows underpinned by its high-quality portfolio and an investment grade balance sheet as well as driving growth in its net asset value and cash flow per unit. For more information, please visit www.dreamindustrialreit.ca.
Forward Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information in this press release may include, among other things, statements regarding the intended use of proceeds of the Offering, the expected rating of the Series F Debentures, the anticipated closing date of the Offering, the anticipated fungibility of the Series F Debentures offered hereby and the terms of the Series F Debentures. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; employment levels; mortgage and interest rates; regulations; uncertainties around the timing and amount of future financings; geopolitical events, including disputes between nations, war and international sanctions; the financial condition of tenants; leasing risks, including those associated with the ability to lease vacant space; rental rates and the strength of rental rate growth on future leasing; and interest and currency rate fluctuations. The Trust’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, rising replacement costs in the Trust’s operating markets remain steady, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamindustrialreit.ca.