/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, Jan. 16, 2017 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB.D; and
HR.DB.H) is pleased to announce it has entered into an agreement to
sell on a private placement "best efforts" agency basis, to a
syndicate of agents co-led and bookrun by TD Securities, Scotia
Capital, BMO Capital Markets and CIBC World Markets, $150 million principal amount of senior unsecured
debentures (the "Series M Debentures"). The Series M
Debentures will be issued at par, bear interest at a rate equal to
3-month CDOR plus 123 basis points payable quarterly in arrears and
will mature on July 23, 2019.
Subject to customary closing conditions, the offering is
scheduled to close on January 23,
2017. 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 $14.5 billion at
September 30, 2016. 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 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 statement contained in this
news release. 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 http://www.hr-reit.com and on
www.sedar.com.
SOURCE H&R Real Estate Investment Trust