DBRS Morningstar Assigns Credit Ratings of BBB (high), Stable, to Primaris Real Estate Investment Trust’s Series D Senior Unsecured Debentures and Reopening of Series A Senior Unsecured Debentures

DBRS, Inc. (DBRS Morningstar) assigned credit ratings of BBB (high) with Stable trends to Primaris Real Estate Investment Trust’s (Primaris or the REIT) $300 million 6.374% Series D Senior Unsecured Debentures, due June 30, 2029 (the Series D Debentures), and $100 million 4.727% Reopening of Series A Senior Unsecured Debentures, due March 30, 2027 (the Series A Reopening). The assigned credit ratings are based upon the credit rating of an already-outstanding series of the Senior Unsecured Debentures.

The Series D Debentures and the Series A Reopening are direct senior unsecured obligations of Primaris and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the REIT. The Series D Debentures and Series A Reopening will be guaranteed, on an unsecured basis, by each subsidiary of Primaris that is a guarantor under the REIT’s senior credit facility, which initially will be PRR Trust, NPS Retail Properties LP, New Primaris Master Limited Partnership, and Circle Retail Properties LP.

DBRS Morningstar understands that the net proceeds from the offering will be used to repay existing indebtedness, partially fund the acquisition of Halifax Shopping Centre and the Annex, and the balance of the net proceeds will be used for general business purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784 (July 4, 2023).

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

DBRS Morningstar applied the following principal methodologies:
-- Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023; https://www.dbrsmorningstar.com/research/412477)
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023;
https://www.dbrsmorningstar.com/research/411694)

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The credit ratings were initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

These are solicited credit ratings.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and credit ratings are under regular surveillance.

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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