By Angela McDaniels
Tacoma, Wash., July 12 - H&R Real Estate Investment Trust priced C$100 million 5.9% convertible subordinated debentures due June 30, 2020 at par, according to a company news release.
The company will sell the convertibles to a syndicate of underwriters co-led by CIBC, RBC Capital Markets Corp. and TD Securities Inc. on a bought-deal basis.
The debentures will be convertible into stapled units of H&R at a conversion price of C$23.50.
The convertibles will be callable from June 30, 2014 and prior to June 30, 2016 if the volume-weighted average trading price for the stapled units is at least 125% of the conversion price. From June 30, 2016 onward, the convertibles will be callable at par at any time.
Subject to regulatory approval, H&R can repay the convertibles at maturity or upon redemption by delivering a number of stapled units equal to the amount due divided by 95% of the market price for the units at that time, plus accrued interest in cash.
The issue is expected to close July 27.
The proceeds will be used to repay debt, for potential acquisitions and for general trust purposes.
H&R is a Toronto-based REIT that owns 33 office, 118 industrial and 121 retail properties in North America.
| Issuer: | H&R Real Estate Investment Trust
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$100 million
|
| Maturity: | June 30, 2020
|
| Coupon: | 5.9%
|
| Price: | Par
|
| Yield: | 5.9%
|
| Conversion price: | C$23.50
|
| Conversion ratio: | 42.55319
|
| Call option: | Beginning June 30, 2014 subject to 125% hurdle; at any time beginning June 30, 2016
|
| Underwriters: | CIBC, RBC Capital Markets and TD Securities Inc.
|
| Pricing date: | July 12
|
| Settlement date: | July 27
|
| Unit symbol: | Toronto: HR.UN
|
| Unit price: | C$17.27 at close July 12
|
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