TORONTO, March 17, 2016 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB.D;
HR.DB.E; HR.DB.H) announced today that it has entered into a new
senior unsecured credit facility for up to $200 million with Bank of Montreal (the "Credit Facility"),
available on a non-revolving basis, maturing March 17, 2021 with no scheduled principal
repayments prior to maturity. The Credit Facility will bear
interest at a floating rate of CDOR or LIBOR plus 1.2% per year.
H&R REIT has immediately drawn down U.S.$140 million and C$18.2
million on the Credit Facility to repay other revolving
credit facilities.
H&R REIT also announced that it has entered into interest
rate swap agreements which effectively fix the interest rate
on:
(i)
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U.S.$130 million of
the U.S. dollar portion of the Credit Facility draw down at 2.56%
per annum;
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(ii)
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the $60 million
floating rate Series I Senior Debentures maturing in January 2017
at 2.54% per annum;
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(iii)
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the U.S. $125.0
million floating rate Series J Senior Debentures maturing in
February 2018 at 2.04% per annum; and
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(iv)
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the $200 million
floating rate Series K Senior Debentures maturing in March 2019 at
2.36% per annum (collectively, the "Senior
Debentures").
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Such interest rate swap agreements are intended to limit H&R
REIT's interest rate exposure during the respective terms of the
Credit Facility and the Senior Debentures.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $14.0 billion as at
December 31, 2015. H&R REIT is a
fully internalized real estate investment trust and has ownership
interests in a North American portfolio of high quality office,
retail, industrial and residential properties comprising over 47
million square feet.
Forward-looking Statements
Certain statements in this news release contain forward-looking
information within the meaning of applicable securities laws (also
known as forward-looking statements). These forward-looking
statements include, but are not limited to H&R REIT's plans,
objectives, expectations and intentions, including H&R REIT's
intentions regarding the limitation of interest rate exposure and
other statements contained in this release that are not historical
facts. 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 risks 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. 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