H&R Real Estate Investment Trust announced it has entered into an agreement to sell on a private placement "best efforts" agency basis, to a syndicate of agents co-led and bookrun by TD Securities, Scotia Capital, BMO Capital Markets and CIBC World Markets, $150 million principal amount of senior unsecured debentures. The Series M Debentures will be issued at par, bear interest at a rate equal to 3-month CDOR plus 123 basis points payable quarterly in arrears and will mature on July 23, 2019. Subject to customary closing conditions, the offering is scheduled to close on January 23, 2017. It is a condition of closing to the offering that the debentures be rated at least BBB (high) with a stable trend by DBRS. The offering is on a private placement basis and the debentures will be issued pursuant to H&R REIT's trust indenture dated February 3, 2010 as supplemented. These debentures will rank pari passu with H&R REIT's outstanding senior unsecured debentures. The net proceeds of the offering will be used for the repayment of existing indebtedness and for general trust purposes.