TORONTO, Aug. 22, 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 an offering (the
"Offering") of an additional $125
million principal amount of Series L Senior Unsecured
Debentures (the "Series L Debentures"), which is a re-opening of
this series of debentures, the original issuance of which was
completed in November 2016. The
Series L Debentures are being offered on an agency basis by a
syndicate of agents co-led by TD Securities, BMO Capital Markets,
CIBC Capital Markets and Scotiabank. These debentures will
carry a coupon rate of 2.923% and will mature on May 6, 2022. The additional Series L Debentures
are being offered at a price of $98.776 per $100
principal amount plus accrued interest, with an effective yield of
3.205% if held to maturity. An aggregate of $325 million of such debentures will be
outstanding after giving effect to the Offering. The Offering
is expected to close on or about August
25, 2017. It is a condition of closing that a final
rating by DBRS of BBB (high) be obtained.
H&R intends to use the net proceeds of the Offering for
general trust purposes, including the redemption of H&R's 5.40%
convertible unsecured subordinated debentures due November 30, 2018 (the "2018 Convertible
Debentures"), of which $74,394,000
aggregate principal amount is currently outstanding.
The Offering of the Series L Debentures is being made under
H&R REIT's existing short form base shelf prospectus dated
May 3, 2017. The terms of the
Offering of the Series L Debentures will be described in a
prospectus supplement to be filed with Canadian securities
regulators.
H&R is also pleased to announce its intention to redeem all
of its outstanding 2018 Convertible Debentures pursuant to and
subject to the terms of the third supplemental trust indenture
dated June 13, 2011, as further
supplemented and amended by the fourth supplemental indenture dated
April 4, 2013, on September 21, 2017 (the "Redemption Date"). The
2018 Convertible Debentures are listed for trading on the TSX under
the trading symbol HR.DB.H.
The outstanding 2018 Convertible Debentures will be redeemed as
at the Redemption Date upon payment by H&R of a redemption
amount equal to the aggregate principal amount (being $74,394,000 on the date hereof) and all accrued
and unpaid interest thereon up to but excluding the Redemption
Date, less any applicable withholding taxes. As noted above,
H&R will use part of the proceeds from the Offering to redeem
the 2018 Convertible Debentures.
Notice of the redemption will be delivered to the trustee, CIBC
Mellon Trust Company, and to the Canadian Depository for Securities
Limited ("CDS") today. Non-registered holders (banks, brokerage
firms or other financial institutions) who maintain their interests
in the 2018 Convertible Debentures through CDS should contact their
CDS customer service representative with any questions about the
redemption. Beneficial holders with any questions about the
redemption should contact their respective brokerage firm or
financial advisor.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $14.1 billion at
June 30, 2017. 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,
the intended use of proceeds, and the delivery of the notice of
redemption in respect of the 2018 Convertible Debentures. 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