DBRS Comments on First Capital’s Re-opening of Series Q Bonds for Additional Issuance of C$175 Million

DBRS notes today that First Capital Realty Inc. (First Capital) has announced it will issue an additional $175 million of 3.90% Series Q Senior Unsecured Debentures (Series Q Bonds) due October 30, 2023, thereby re-opening this series of debentures. The original issuance of $125 million was rated BBB (high), with a Stable trend, by DBRS on March 20, 2013. This re-opening of the Series Q Bonds does not change the previously assigned rating or trend.

An aggregate of $300 million of Series Q Bonds will be outstanding after giving effect to this offering. DBRS understands that the net proceeds will be used for redemption of First Capital’s remaining $53.9 million outstanding 5.36% Series E Senior Unsecured Debentures due January 31, 2014, and repayment of other secured and/or unsecured debt. The Series Q Bonds will rank equally and rateably with First Capital’s existing Senior Unsecured Debentures.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Real Estate Entities, which can be found on our website under Methodologies.