By Cristal Cody
Prospect News, Oct. 27 - H&R Real Estate Investment Trust sold C$100 million of 4.9% senior debentures (DBRS: BBB) due Feb. 2, 2018 at par late Thursday.
The series E debentures priced at a spread of 295.6 basis points over the Canadian bond curve, an informed bond source said.
The deal, targeted to retail investors, still has room to grow, and sizing will be finalized on Friday, the source said.
CIBC World Markets Inc. and RBC Capital Markets Corp. were the bookrunners.
The proceeds will be used to repay bank debt, to fund future property acquisitions and for general trust purposes.
H&R REIT last was in the market with a debt sale on Jan. 20, 2011 of 4.778% series D senior debentures due July 27, 2016, which priced at a spread of 208.2 bps over the Government of Canada benchmark.
Downsview, Ont.-based H&R REIT owns office, single-tenant industrial and retail properties.
| Issuer: | H&R Real Estate Investment Trust
|
| Amount: | C$100 million
|
| Maturity: | Feb. 2, 2018
|
| Securities: | Senior debentures
|
| Bookrunners: | CIBC World Markets Inc., RBC Capital Markets Corp.
|
| Coupon: | 4.9%
|
| Price: | Par
|
| Yield: | 4.9%
|
| Spread: | 295.6 bps over Canadian bond curve
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 3
|
| Rating: | DBRS: BBB
|
| Distribution: | Canada
|
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