June 29, 2022

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RioCan Real Estate Investment Trust announces offering of $250 million, 7-year Series AF senior unsecured debentures at a coupon rate of 4.628% with an all-in interest rate of 3.829% after including the benefits of its bond forward hedges

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TORONTO, April 06, 2022 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) today announced that it has agreed to issue $250 million principal amount of Series AF senior unsecured debentures (the “Debentures”). This issuance provides additional liquidity to RioCan to support its strategy, pursue opportunities and manage potential risks. Inclusive of the benefit of bond forward hedges, the all-in rate of 3.829% is favourable compared to current market rates and RioCan has an additional $250 million of bond forward contracts in place to hedge future issuances.

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The Debentures will be sold at a price of $99.998 per $100 principal amount, with a coupon rate of 4.628% per annum and mature on May 1, 2029. To hedge its exposure to movements in underlying risk-free interest rates relating to the Trust’s financings, RioCan previously entered into certain bond forward contracts with a notional aggregate value of $500 million. In connection with this offering, $250 million of the contracts will be settled with a favourable realized mark-to-market of $14 million to the Trust. This gain will be amortized over the term of the Debentures. The net proceeds of this offering will be used by the Trust to repay certain debt incurred in the ordinary course including replenishing its corporate line of credit.

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2022-04-06 18:43:00

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