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HALIFAX, June 21 /CNW/ - Holloway Lodging Real Estate Investment Trust
("Holloway" or the "REIT") today announced that it has closed its previously
announced $140 million bought deal public offering comprised of
17,758,000 units at a price of $5.35 per unit and $45,000,000 of 6.50%
convertible unsecured subordinated debentures due June 2012 (the "Offering").
Holloway has granted the underwriters an over-allotment option to purchase, at
any time up to 30 days following completion of the Offering, an additional
number of units and convertible unsecured subordinated debentures at the same
price as under the Offering in an aggregate amount equal to up to
approximately $21 million.
The net proceeds of the Offering will be used to fund a portion of the
cash purchase price for the REIT's previously announced acquisition of
10 hotel properties located in northern Alberta and British Columbia from the
Pomeroy Group (the "Pomeroy Acquisition") and the acquisition of a Holiday Inn
Express in Kamloops, to pay expenses related to the Pomeroy Acquisition, to
fund other future acquisitions, fund the REIT's mezzanine lending and capital
improvement programs and for working capital purposes. The Pomeroy Acquisition
is expected to close on June 22, 2007.
The Offering was underwritten by a syndicate of underwriters led by
Canaccord Capital Corporation and including CIBC World Markets Inc, TD
Securities Inc., RBC Dominion Securities Inc., Scotia Capital Inc., BMO
Nesbitt Burns Inc. and Blackmont Capital Inc.
The REIT is a real estate investment trust listed as a Tier 2 issuer on
the TSX Venture Exchange with the objective of acquiring and maintaining a
growing portfolio of lodging properties with stable cash distributions. The
REIT has recently applied to graduate to the Toronto Stock Exchange.
This press release contains forward-looking information within the
meaning of applicable securities laws. 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 the REIT's prospectus
dated June 13, 2007.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information:
For further information: Mr. Glenn Squires, Chief Executive Officer; Ms.
Tracy Sherren, Chief Financial Officer, (902) 457-1907