TORONTO, April 5, 2017 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT" or "H&R") (TSX: HR.UN;
HR.DB.D; and HR.DB.H) is pleased to announce that as a result of
strong investor demand for its previously announced offering it has
agreed to increase the size of the offering to $150 million principal amount of Series N Senior
unsecured debentures, which will be offered to the public on a
bought deal basis. The offering is a re-opening of this series of
debentures, the original issuance of which was completed in
January 2017. These debentures will
carry a coupon rate of 3.369% and will mature on January 30, 2024. The additional debentures were
sold at a price of $100.532 per
$100 principal amount plus accrued
interest, with an effective yield of 3.279% if held to maturity. An
aggregate of $350 million of such
debentures will be outstanding after giving effect to the offering.
The offering is being underwritten through a syndicate co-led and
bookrun by TD Securities, BMO Capital Markets, CIBC Capital Markets
and Scotiabank. The offering is expected to close on or about
April 13, 2017. It is a condition of
closing that a final rating by DBRS of BBB (high) be obtained.
The net proceeds from the offering of the Series N Debentures
will be utilized by H&R REIT to repay outstanding indebtedness
and for general trust purposes.
The offering of the Series N 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 N 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 $14.7 billion at
December 31, 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 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's plans,
objectives, expectations and intentions, including the date of
closing of the offering and the filing of a prospectus supplement
and the intended use of proceeds. Such forward-looking statements
reflect H&R'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's
estimates and assumptions that are subject to risks and
uncertainties, including those discussed in H&R's materials
filed with the Canadian securities regulatory authorities from time
to time, which could cause the actual results and performance of
H&R to differ materially from the forward-looking statements
contained in this news release. Although the forward-looking
statements contained in this news release are based upon what
H&R 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, 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 is available
at http://www.hr-reit.com and on www.sedar.com.
SOURCE H&R Real Estate Investment Trust