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HALIFAX, April 27 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN HLR.DB HLR.DB.A) ("Holloway" or the "REIT") announced today that the Toronto Stock Exchange (the "TSX") has approved the REIT's notice of intention to make a normal course issuer bid for up to 2,508,122 of its trust units and its notice of intention to make a normal course issuer bid for up to $5,184,400 of its 6.5% convertible debentures due June 30, 2012, each representing 10% of the REIT's public float of trust units and 6.5% debentures as of April 26, 2011.
Pursuant to the notice, the REIT may, over the 12 month period commencing on April 29, 2011 and ending on April 28, 2012 (or on such earlier date as the REIT completes its purchases pursuant to the bid or provides notice of cancellation), purchase trust units and 6.5% debentures through the facilities of the TSX at prevailing market prices in accordance with the rules and policies of the TSX. All trust units and 6.5% debentures purchased by the REIT under the normal course issuer bids will be cancelled. As of April 26, 2011, the REIT had a total of 39,031,716 trust units issued and outstanding and $51,844,000 principal amount of 6.5% debentures issued and outstanding. The average daily trading volume of the trust units and 6.5% debentures during the last six months ending on March 31, 2011 was 82,222 trust units and $59,800 principal amount of 6.5% debentures, respectively, and the daily repurchase limit for the trust units and 6.5% debentures is 20,555 trust units and $14,900 principal amount of 6.5% debentures, respectively.
Management of the REIT believes that, on occasion, trust units and the 6.5% debentures become available at prices that do not give full effect to their underlying value, based solely on management's opinion of the REIT's future prospects. Accordingly, management believes that the purchase of trust units and 6.5% debentures pursuant to the normal course issuer bids represents an investment opportunity for Holloway and an appropriate use of its funds.
Holloway is a real estate investment trust focused on acquiring, owning and operating select and limited service lodging properties and a small complement of full service hotels primarily in secondary, tertiary and suburban markets and providing investors with stable distributions. Holloway currently owns 22 hotels with 2,386 rooms. Holloway's trust units and convertible debentures trade on the Toronto Stock Exchange under the symbols HLR.UN, HLR.DB and HLR.DB.A, respectively.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the future financial position, property acquisition strategies and opportunities, business strategy, financial results and plans and objectives of the REIT. Particularly, statements regarding the REIT's future operating results, property acquisition strategies and opportunities and economic performance are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward looking-information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what the REIT currently expects and there can be no assurance that such statements will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's annual information form dated March 24, 2011 which is available at www.sedar.com. The REIT does not intend to update or revise any such forward-looking information should its assumptions and estimates change.
SOURCE Holloway Lodging Real Estate Investment Trust
For further information: Mr. Glenn Squires, Chief Executive Officer; Ms. Tracy Sherren, Chief Financial Officer, at (902) 404-3499