Business
H&R Announces Intention to Issue Initial Bonds Secured by The Bow
TORONTO, May 16, 2012 /CNW/ - H&R Real Estate Investment Trust ("H&R") (TSX: HR.UN;...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 16, 2012 /CNW/ - H&R Real Estate Investment Trust (\"H&R\")\n (TSX: HR.UN; HR.DB; HR.DB.B; HR.DB.C; HR.DB.D; HR.DB.E) announced today\n its intention, through its wholly owned entity Centre Street Trust, to\n arrange, on a private placement basis, two series of first mortgage\n bonds secured by The Bow, Calgary, Alberta (the \"Initial Bonds\" as\n defined below).\n\n\nThe Initial Bonds (the \"Offering\") are expected to be comprised of $200\n million, 9 year term, semi-annual interest only bonds (the \"Series A\n Bonds\") and $200 million of semi-annual 10 year term, 30 year\n amortizing bonds (the \"Series B Bonds\", together with the Series A\n Bonds, the \"Initial Bonds\").  H&R intends to utilize the proceeds from\n the Offering to repay indebtedness and for future acquisitions.  The\n Initial Bonds have achieved a provisional rating of A by DBRS.\n\n\nTerm bonds (including the Initial Bonds) secured by The Bow may be\n issued from time to time in a total aggregate amount not to exceed $800\n million and are not permitted to exceed $365 million at the end of the\n initial 25 year term of the Encana Lease (the \"Term Bonds\").  Term Bonds issued by H&R in excess of $400 million will be used to\n permanently reduce amounts available under the Secured Revolver\n (defined below), in order to ensure that the $800 million maximum\n financing secured by The Bow is not breached.\n\n\nThe Bow also secures a secured revolver in favour of certain lenders in\n the amount of up to $400 million (the \"Secured Revolver\"). The security\n for the Term Bonds (including the Initial Bonds) and the Secured\n Revolver are pari passu and subject to an intercreditor agreement with\n the trustee on behalf of the holders of the Term Bonds.\n\n\nThe Offering of the Initial Bonds will be led by RBC Dominion Securities\n as lead agent and sole bookrunner, together with CIBC World Markets and\n TD Securities.\n\n\nAbout H&R \n\n\nH&R is an open-ended real estate investment trust, which owns a North\n American portfolio of 40 office, 117 industrial, 133 retail properties\n comprising over 43 million square feet, and 3 development projects with\n a total net book value of approximately $7.6 billion. The foundation of\n H&R's success since inception in 1996 has been a disciplined strategy\...