TORONTO, Feb. 13, 2018 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT" or "H&R") (TSX: HR.UN and
HR.DB.D) announced today that it completed its previously announced
offering of US$125 million principal
amount of floating rate Series P senior unsecured debentures due
February 13, 2020 (the "Series P
Debentures"). H&R REIT had previously agreed with a syndicate
of agents co-led and bookrun by TD Securities, BMO Capital Markets,
CIBC Capital Markets, National Bank Financial Inc. and Scotiabank
to sell the Series P Debentures on a private placement "best
efforts" agency basis. The Series P Debentures have been issued at
par, bear interest at a rate equal to 3-month LIBOR plus 79 basis
points payable quarterly in arrears and mature on February 13, 2020. The net proceeds of the
offering will be used for the repayment of existing indebtedness
and for general trust purposes, including the redemption of the
REIT's 5.90% convertible unsecured subordinated debentures due
June 30, 2020, of which $99,652,000 aggregate principal amount is
currently outstanding (the "2020 Convertible Debentures").
H&R is also pleased to announce that it has delivered the
redemption notice in respect of the 2020 Convertible Debentures to
the trustee, BNY Trust Company of Canada. The 2020 Convertible Debentures will
be redeemed on March 12, 2018 (the
"Redemption Date"). The 2020 Convertible Debentures are listed for
trading on the TSX under the trading symbol HR.DB.D. The
outstanding 2020 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 $99,652,000 on the date hereof) and all accrued
and unpaid interest thereon up to but excluding the Redemption
Date, less any applicable withholding taxes.
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
September 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 REIT's plans,
objectives, expectations and intentions, including the expected use
of proceeds of the offering. 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. 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.
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