H&R REIT Closes Financing and Repurchases Fairfax Debentures

On February 3, 2010, H&R Real Estate Investment Trust (H&R REIT) closed a bought deal financing pursuant to which it issued $115 million principal amount of 5.196 per cent Series A Senior Debentures due February 3, 2015, and $115 million principal amount of 5.902 per cent Series B Senior Debentures due February 3, 2017. The debentures were sold to a syndicate of underwriters co-led by RBC Dominion Securities Inc. and TD Securities Inc. that included CIBC World Markets Inc., Scotia Capital Inc. and BMO Nesbitt Burns Inc.

The net proceeds from the offering were used by H&R REIT to repurchase all $200 million principal amount of 11.5 per cent debentures (the Fairfax Debentures) owned by Fairfax Financial Holdings and its affiliates (collectively, Fairfax). The Fairfax Debentures were repurchased on February 3, 2010, for approximately $230 million, including accrued interest from the last interest payment date.

H&R REIT was represented by Blake, Cassels & Graydon LLP with a team that included William Fung, Leslie Johnson, Gordon McKenna and Mostafa Asadi (securities); Jeffrey Trossman and Andrew Spiro (tax); and Peter MacGowan (financial services).

The underwriters were represented by Goodmans LLP with a team that included David Matlow, Allan Goodman and James Rickert (securities); Mark Surchin (banking); David Veneziano (tax); and Ken Herlin and Daniel Shapira (real estate).