DBRS Assigns BBB (high) Rating to H&R REIT’s Reopening of the Series L Senior Unsecured Debentures

DBRS Limited (DBRS) assigned a final rating of BBB (high) with a Stable trend to H&R Real Estate Investment Trust’s (H&R or the Trust) reopening of the 2.923% Series L Senior Unsecured Debentures (the Series L Bonds – Reopening).

H&R has issued an additional $125 million of 2.923% Series L Bonds, which is a reopening of the original Series L issuance of $200 million that closed on November 7, 2016 (the Series L Bonds – Original). The Series L Bonds – Original were rated BBB (high) with a Stable trend by DBRS. DBRS notes that the Series L Bonds – Reopening do not change the rating assigned to the original Series L issuance of $200 million.

After giving effect to this reopening, $325 million of Series L Bonds will be outstanding.

The Series L Bonds – Reopening are direct senior unsecured obligations of H&R, and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Trust.

DBRS understands that the net proceeds from the offering will be used for general trust purposes, including the redemption of the Trust’s 5.40% convertible unsecured subordinated debentures due November 30, 2018, of which $74,394,000 of aggregate principal amount is currently outstanding.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Entities in the Real Estate Industry (April 2017) and Preferred Share and Hybrid Criteria for Corporate Issuers (December 2016), which can be found on www.dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com