RioCan gets C$350 million new facility, extends C$150 million facility

By Angela McDaniels

Tacoma, Wash., Feb. 7 – RioCan Real Estate Investment Trust has a new C$350 million non-revolving credit facility due Feb. 7, 2024 and made changes to two other credit facilities, according to a company news release.

Through an interest rate swap, the new credit facility has an annual fixed interest rate of 3.339%.

The new credit facility is with three financial institutions.

RioCan has fully drawn on the new credit facility to repay debt and for general trust purposes.

Under the terms of the credit agreement, RioCan must maintain financial covenants similar to those of its revolving operating line of credit and other non-revolving unsecured credit facilities.

In addition, RioCan extended the maturity of its C$150 million non-revolving credit facility to June 27, 2024 from Dec. 27, 2019 and fixed the annual interest rate at 3.425% through an interest rate swap.

RioCan also fixed the annual interest rate for C$125 million of its non-revolving credit facility due Jan. 31, 2023 at 3.38% through an interest rate swap.

The Toronto-based REIT said these transactions strengthen its financial flexibility by providing access to additional capital sources, extending the average term to maturity of its total debt, and reducing its floating-rate debt exposure.

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