DBRS Rates Bow Centre Street Limited Partnership’s $300 Million Series C Secured Bonds

DBRS has today assigned a rating of “A” with a Stable trend to the $300 million 3.797% Series C Secured Bonds due June 13, 2023 (the Bonds) of Bow Centre Street Limited Partnership (the Issuer). Recourse for the Bonds is limited to the property, The Bow, in Calgary, Alberta.

On June 14, 2012, DBRS assigned final ratings of “A” with Stable trends to the Issuer’s $250 million 3.690% Series A Secured Bonds due June 14, 2021 (Series A Bonds) and $250 million 3.693% Series B Secured Bonds due June 22, 2022 (Series B Bonds). The new offering, combined with the Series A Bonds and Series B Bonds, will result in an aggregate of $800 million secured bonds outstanding, which is the maximum amount of senior secured term bonds allowed to be issued under the Issuer’s Trust Indenture. DBRS notes that the initial rating assignment to Series A Bonds and Series B Bonds factored in the possibility of $800 million secured bonds issuance.

The Bonds will rank equally and rateably with the existing Series A Bonds and Series B Bonds. DBRS understands that the proceeds of the offering will be used to repay outstanding indebtedness of the Issuer, with the remainder to be used to return capital or to be loaned to its limited partner H&R Real Estate Investment Trust to repay its indebtedness.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Real Estate Entities (April 2011), which can be found on our website under Methodologies.