RioCan Real Estate Investment Trust 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 favorable compared to current market rates and RioCan has an additional $250 million of bond forward contracts in place to hedge future issuances.

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 favorable 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. The Debentures are being offered on an agency basis by a syndicate of agents co-led by TD Securities, BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and Scotia Capital Inc. Subject to customary closing conditions, the offering is expected to close on April 18, 2022.

It is a condition of closing that DBRS Limited assign a rating of at least BBB with a stable trend and Standard & Poor's assign a rating of at least BBB for the Debentures with a negative outlook to the entity rating given to RioCan. The offering is being made on a private placement basis in each of the provinces of Canada, and the Debentures will be issued pursuant to RioCan's trust indenture dated March 8, 2005, as supplemented. The Debentures will rank equally with all other senior unsecured indebtedness of the Trust.

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.