Mr. Larry Froom reports
H&R COMPLETES US$125MM SENIOR UNSECURED DEBENTURE FINANCING
H & R Real Estate Investment Trust has completed its previously announced offering of $125-million (U.S.) principal amount of floating-rate Series P senior unsecured debentures due Feb. 13, 2020. H & R 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-effort agency basis. The Series P debentures have been issued at par, bear interest at a rate equal to three-month LIBOR (London interbank offered rate) plus 79 basis points (payable quarterly in arrears) and mature on Feb. 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 5.9 per cent convertible unsecured subordinated debentures due June 30, 2020, of which $99,652,000 aggregate principal amount is currently outstanding.
H & R 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 2020 convertible debentures are listed for trading on the Toronto Stock Exchange 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 Real Estate Investment Trust
H & R is Canada's largest diversified real estate investment trust with total assets of approximately $14-billion as at Sept. 30, 2017. H & R 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.
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