Temple Hotels Inc. announces intention to extend maturity date of and other amendments to Series B Debentures

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

WINNIPEG, March 7, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today its intention to amend the terms of its issued and outstanding 5 Year 8.50% convertible redeemable unsecured subordinated debentures (the "Series B Debentures"), subject to regulatory approval and the approval of the holders of the Series B Debentures (the "Series B Debentureholders") by extraordinary resolution.  Temple has prepared and will send to holders of the Series B Debentures ("Series B Debentureholders") an information circular (the "Circular") and proxy relating to a meeting (the "Meeting") of the Series B Debentureholders to be held at the offices of Shelter Canadian Properties Limited located at 2600, Seven Evergreen Place in Winnipeg, Mantioba at 2 p.m. on April 9, 2013 at which the Series B Debentureholders will vote on whether to accept the amendments to the Series B Debentures.  The record date for determining the Series B Debentureholders entitled to vote at the Meeting is March 7, 2013.

At the Meeting, the Series B Debentureholders will be asked to approve the following amendments to the Series B Debentures:

  • changing the interest rate on the Series B Debentures from 8.50% per annum to 7.00% per annum, commencing on April 30, 2013 with the interest payable semi-annually on April 30 and October 31 in each year;
  • extending the maturity date of the Series B Debentures from April 30, 2013 to April 30, 2018;
  • changing the conversion price at which a Debentureholder may convert Debentures into common shares of Temple ("Common Shares") from $7.50 per Common Share to $7.80 per Common Share;
  • continuing the ability of Temple to redeem the Series B Debentures at any time upon notice;
  • eliminating the ability of Temple to repay the principal amount of the Series B Debentures through the issuance of Common Shares on redemption or maturity of the Series B Debentures;
  • eliminating the ability of Temple to satisfy its interest payment obligations through the issuance of freely tradeable Common Shares.

In order to effect the foregoing amendments to the Series B Debentures, the resolution approving the amendments must be approved by not less than two-thirds of the votes cast at the Meeting.  If the amendments are approved, Temple will enter into an amended and restated trust indenture with the indenture trustee for the Series B Debentures.  For further information regarding the proposed amendments to the Series B Debentures, see the management information circular to be sent to Debentureholders and the proposed form of amended and restated trust indenture relating to the Series B Debentures, copies of which will be filed on SEDAR on or before the mailing date of March 19, 2013.

Temple has retained Laurentian Bank Securities Inc. as financial advisor and solicitation agent to solicit votes regarding the Series B Debenture amendments.

There are approximately $19,856,100 aggregate principal amount of Series B Debentures issued and outstanding on the date hereof. The Series B Debentures are currently listed on the Toronto Stock Exchange under the trading symbol "TPH.DB.B".

About Temple

Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (common 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 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.

The TSX has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.

This press release is not an offer of securities for sale in the United States, the securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and will contain detailed information about the company and management, as well as financial statements.

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@lreit.com


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