By Angela McDaniels
Tacoma, Wash., July 30 - H&R Real Estate Investment Trust issued C$150 million of 6.75% series B convertible unsecured subordinated debentures due Dec. 31, 2014, according to a company news release.
The debentures are convertible into stapled units at a conversion price of C$14.00 per unit.
From July 30, 2012 to July 30, 2013, the debentures are callable if the volume-weighted average trading price for the stapled units is not less than 125% of the conversion price. After July 30, 2013, they are callable at par at any time.
Subject to regulatory approval, H&R can repay the debentures upon redemption or at maturity in stapled units, with the number of units equal to the amount due divided by 95% of the market price for the units at that time.
The syndicate of underwriters was co-led by CIBC, RBC Capital Markets and TD Securities Inc.
The offering priced on July 21 and was originally expected to be C$75 million in size with a C$25 million greenshoe. It was amended to be C$150 million in size with no greenshoe later that day.
The proceeds will be used to fund the Bow development in Calgary, Alta., and in the interim for general trust purposes.
H&R is an open-ended REIT based in Downsview, Ont.
| Issuer: | H&R Real Estate Investment Trust
|
| Issue: | Series B convertible unsecured subordinated debentures
|
| Amount: | C$150 million
|
| Maturity: | Dec. 31, 2014
|
| Underwriters: | CIBC, RBC Capital Markets and TD Securities Inc. (co-leads)
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Conversion price: | C$14.00
|
| Conversion ratio: | 71.42857
|
| Call option: | From July 30, 2012 to July 30, 2013 if unit VWAP is at least 125% of conversion price; at any time after July 30, 2013
|
| Put option: | None
|
| Pricing date: | July 21
|
| Settlement date: | July 30
|
| Unit symbol: | TSX: HR.UN
|
| Unit price: | C$11.62 at close July 20
|
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