H&R Real Estate Investment Trust (the REIT) and H&R Finance Trust (Finance Trust) completed a bought deal financing pursuant to which they issued 6,360,000 stapled units at a price of $23.60 per stapled unit for total aggregate gross proceeds of approximately $150.1 million. The stapled units were sold to a syndicate of underwriters co-led by CIBC and RBC Capital Markets, and including TD Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Genuity Corp. and Raymond James Ltd.
The REIT will use its portion of the net proceeds from the offering for future acquisitions and the repayment of bank indebtedness and mortgage debt. Finance Trust used its portion of the net proceeds from the offering to subscribe for additional notes issued by H&R REIT (U.S.) Holdings Inc.
The REIT and Finance Trust were represented by Blake, Cassels & Graydon LLP with a team that included William Fung, Eric Moncik, Matthew Merkley and Adam Garetson (securities); Jeffrey Trossman, Andrew Spiro and Ilan Braude (tax); 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 Joanna Creed (securities); Jarrett Freeman (tax) and Ken Herlin and Daniel Shapira (real estate).