Morguard (MRC.TO) agreed to issue $250 million aggregate principal amount of series J senior unsecured debentures, it said after markets closed on Thursday.
The debentures will bear interest at a rate of 4.307% per year and will mature on June 18, 2029.
Morningstar DBRS assigned a provisional rating of "BBB (low)" with a Stable trend.
The company also said that it will redeem all of its outstanding 9.5% Series H senior unsecured debentures due Sept. 26, 2026 on June 22, 2026.
The net proceeds of the offering will be used towards the early redemption of the 2023 debentures and for general corporate purposes, it added.
"The redemption price will be paid in cash and is approximately $1,014.753 per $1,000 principal amount of 2023 Debentures, together with accrued and unpaid interest on the 2023 Debentures up to, but excluding, the Redemption Date," said the company.
The company's shares were last seen up $1.00 at $122.00 on the Toronto Stock Exchange.
Price: $122.00, Change: $+1.00, Percent Change: +0.83%