/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./
TORONTO, July 21, 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 an offering, through a syndicate of
agents co-led by RBC Capital Markets, TD Securities and CIBC, of
$200 million principal amount of
senior unsecured debentures (the "Series K Debentures"). The Series
K Debentures will bear interest at a rate equal to 3-month
CDOR plus 143 basis points, payable quarterly in arrears, and will
mature on March 1, 2019.
The net proceeds from the offering of the Series K Debentures
will be utilized by H&R REIT to repay outstanding indebtedness
and for general trust purposes.
DBRS Limited has provided H&R REIT with a provisional credit
rating of BBB (high) with a stable trend relating to the Series K
Debentures. Closing is expected to occur on or about July 28, 2015.
The offering of the Series K Debentures is being made under
H&R REIT's existing short form base shelf prospectus dated
April 30, 2015. The terms of the
offering of the Series K Debentures will be described in a
prospectus supplement to be filed with Canadian securities
regulators.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $13.5 billion as at
March 31, 2015. H&R REIT is a
fully internalized REIT and has ownership interests in a North
American portfolio of high quality office, retail, industrial and
residential properties comprising over 46 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 statements 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
these 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.
SOURCE H&R Real Estate Investment Trust