H&R Real Estate Investment Trust (the “REIT”) and H&R Finance Trust (collectively, “H&R”) completed a bought deal financing pursuant to which H&R issued 8,500,000 stapled units at a price of $22.00 per stapled unit and the REIT issued $75 million aggregate principal amount of 4.50 Series E convertible unsecured subordinated debentures due December 31, 2016, for total aggregate gross proceeds of $262 million. The stapled units and convertible debentures were sold to a syndicate of underwriters co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc., and included BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp. and Raymond James Ltd.
The net proceeds from the financing will be used by H&R to repay bank indebtedness, fund future property acquisitions and for general trust purposes, including, in the case of H&R Finance Trust, for the subscription of additional notes to be issued by H&R REIT (U.S.) Holdings Inc.
H&R was represented by Blake, Cassels & Graydon LLP with a team that included William Fung, Eric Moncik, Matthew Merkley, Sandie Huynh and Adam Garetson (securities); Jeffrey Trossman and Andrew Spiro (tax) and Peter MacGowan (financial services), and by Abraham Leitner and Megan Grandinetti of Davies Ward Phillips & Vineberg LLP for US tax matters.
The underwriters were represented by Goodmans LLP with a team that included Allan Goodman and Leah Ramkaran (securities); David Veneziano and Mark Biderman (tax) and Ken Herlin and Dan Shapira (real estate).