-- Nexus Industrial REIT (NXR-UN.TO) after trade Thursday priced a private-placement offering of $500 million of senior unsecured debentures.
The REIT said the offering consists of $300 million of Series A Debentures maturing April 14, 2029, carrying a 4.236% annual interest rate, and $200 million Series B Debentures maturing April 14, 2031, paying 4.641% yearly. The debentures are being offered on a private placement basis in each of the provinces of Canada by a syndicate of agents.
"We are very pleased to announce the successful pricing of Nexus' inaugural debenture offering, with an expected credit rating of BBB (low) with a Stable trend from Morningstar DBRS," said chief executive Kelly Hanczyk. "The expected investment grade rating of our first Debentures reflects our execution on the REIT's long-term, strategic plans and helps position the REIT for future flexibility."
The REIT intends to use the net proceeds from the offering to repay existing indebtedness and for general trust purposes. The closing is expected to take place on or about April 14.
Nexus units closed up $0.04 to $7.78 on the Toronto Stock Exchange.