Temple Hotels Inc. Announces Closing of Previously Announced $35 Million Offering of Series F Convertible Redeemable Unsecured Subordinated Debentures

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./

WINNIPEG, Feb. 12, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) today announced that it has closed its previously announced public offering (the "Offering") of 5 Year 7.00% Series F Convertible Redeemable Unsecured Subordinated Debentures due March 31, 2018 (the "Debentures").  Pursuant to the Offering, Temple sold 35,000 Debentures for gross proceeds to Temple of $35,000,000, on a bought deal basis, to a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets, and including Raymond James Ltd., Laurentian Bank Securities Inc., Macquarie Capital Markets Canada Ltd., Desjardins Securities Inc., Dundee Securities Corp., and Mackie Research Capital Corp. (collectively, the "Underwriters")

Temple has granted the Underwriters an over-allotment option exercisable at any time up to the date that is 30 days from the date of closing of the Offering to purchase up to an additional $5.25 million aggregate principal amount of Debentures on the same terms and conditions.

Temple will use the net proceeds from the Offering to fund additional acquisitions of income-producing hotel properties, to repay existing debt, for general corporate purposes and/or for working capital, as more particularly described in the short form prospectus dated February 1, 2013.

The Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "TPH.DB.F".

Temple is a real estate investment company listed on the TSX under the symbols TPH (shares), TPH.DB.B, TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide Shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.

This press release contains certain statements that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements.

The TSX has not reviewed or approved the contents of this press release and neither accepts responsibility for the adequacy or accuracy of this press release.



SOURCE: Temple Hotels Inc.

For further information:

Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: info@templehotels.ca


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