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TORONTO, Jan. 30, 2017 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB.D; and HR.DB.H) announced today that it completed its previously announced offering of $200 million principal amount of 3.369% Series N senior unsecured debentures due January 30, 2024 (the "Series N Debentures"). H&R REIT had previously agreed to sell the Series N Debentures to a syndicate of underwriters co-led by BMO Capital Markets, CIBC Capital Markets, Scotiabank and TD Securities, on a bought deal basis.
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. In particular, it is anticipated that the net proceeds from this offering together with the net proceeds from the private placement of Series M senior unsecured debentures that closed on January 23, 2017 and the net proceeds from the previously announced sale of a 50% interest in two Canadian enclosed shopping centres will be utilized by H&R REIT to (i) repay two series of outstanding debentures having an aggregate principal amount of approximately $175 million maturing between January 23 and February 3, 2017, and (ii) repay outstanding mortgages having an aggregate principal amount of approximately $307 million maturing between February 1 and March 1, 2017.
About H&R REIT
H&R REIT is Canada's largest diversified real estate investment trust with total assets of approximately $14.5 billion as 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.
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.
SOURCE H&R Real Estate Investment Trust
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For further information: Larry Froom, Chief Financial Officer, H&R REIT (416) 635-7520, or e-mail [email protected]