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TORONTO, Feb. 2, 2015 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB.D; HR.DB.E and
HR.DB.H) is pleased to announce it has entered into an agreement to
sell on a private placement "best efforts" agency basis, through a
syndicate of agents led by TD Securities Inc., US$125 million
principal amount of senior unsecured debentures (the "Series J
Debentures"). The Series J Debentures will be issued at par,
bear interest at a rate equal to the 3-month LIBOR plus 108 basis
points payable quarterly in arrears and will mature on February 9, 2018.
Subject to customary closing conditions, the offering is
scheduled to close on February 9,
2015. It is a condition of closing to the offering that the
debentures be rated at least BBB (high) with a stable trend by
DBRS. The offering is on a private placement basis and the
debentures will be issued pursuant to H&R REIT's trust
indenture dated February 3, 2010 as supplemented. These
debentures will rank pari passu with H&R REIT's
outstanding senior unsecured debentures.
The net proceeds of the offering will be used for the repayment
of existing indebtedness and for general trust purposes.
The debentures offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the debentures in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $13.6 billion as at
September 30, 2014. H&R REIT is a
fully internalized REIT and has ownership interests in a North
American portfolio of high quality office, retail and industrial
properties comprising over 55 million square feet.
Forward-looking Statements
Certain information in this news release contains
forward-looking information within the meaning of applicable
securities laws (also known as forward-looking statements)
including, among others, statements relating to the expected date
of closing for the offering, the objectives of H&R REIT,
strategies to achieve those objectives, H&R REIT's beliefs,
plans, estimates, and intentions, and similar statements concerning
anticipated future events, results, circumstances, performance or
expectations that are not historical facts. Forward-looking
statements generally can be identified by words such as "outlook",
"objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans", "project", "budget" or
"continue" or similar expressions suggesting future outcomes or
events. Such forward-looking statements reflect H&R
REIT's current beliefs and are based on information currently
available to management. These statements are not guarantees
of future performance and are based on H&R REIT's estimates and
assumptions that are subject to risk and uncertainties, including
those discussed in H&R REIT's materials filed with the Canadian
securities regulatory authorities from time to time, which could
cause the actual results and performance of H&R REIT to differ
materially from the forward-looking statement contained in this
news release. Those risks and uncertainties include, among
other things, risks related to: prices and market value of
securities of H&R REIT; availability of cash for distributions;
restrictions pursuant to the terms of indebtedness; liquidity;
credit risk and tenant concentration; interest rate and other debt
related risk; tax risk; ability to access capital markets;
dilution; lease rollover risk; construction risks; currency risk;
unitholder liability; co-ownership interest in properties;
competition for real property investments; environmental matters;
and changes in legislation and indebtedness of H&R REIT.
Material factors or assumptions that were applied in drawing a
conclusion or making an estimate set out in the forward-looking
statements include that the general economy is stable; local real
estate conditions are stable; interest rates are relatively stable;
and equity and debt markets continue to provide access to
capital. H&R REIT cautions that this list of factors is
not exhaustive. Although the forward-looking statements
contained in this news release are based upon what H&R REIT
believes are reasonable assumptions, there can be no assurance that
actual results will be consistent with those forward-looking
statements. All forward looking statements in this news
release are qualified by these cautionary statements. These
forward-looking statements are made as of today, and H&R REIT,
except as required by applicable law, assumes no obligation to
update or revise them to reflect new information or the occurrence
of future events or circumstances.
Additional information regarding H&R REIT and H&R
Finance Trust is available at www.hr-reit.com and on
www.sedar.com.
SOURCE H&R Real Estate Investment Trust