Temple Hotels Inc. Announces Normal Course Issuer Bid

MISSISSAUGA, ON, March 10, 2017 /CNW/ - Temple Hotels Inc. (TSX:TPH) ("Temple") today announced that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid ("NCIB") through the facilities of the TSX and/or alternative Canadian trading systems.

The notice provides that Temple may, during the twelve month period commencing March 15, 2017 and ending on March 14, 2018, purchase for cancellation up to 7,580,983 common shares ("Common Shares") in total, being approximately 5% of the issued and outstanding Common Shares. The daily repurchase restriction for the Common Shares, other than block purchases, is 21,992. 

Additionally, Temple may purchase for cancellation up to $3,313,700 aggregate principal amount of Series D convertible redeemable debentures (the "Series D Debentures") (TPH.DB.D); up to $4,404,000 aggregate principal amount of Series E convertible redeemable debentures (the "Series E Debentures") (TPH.DB.E); and up to $3,381,900 aggregate principal amount of Series F convertible redeemable debentures (the "Series F Debentures") (TPH.DB.F) representing 10% of the public float of each of the Series D Debentures, Series E Debentures and Series F Debentures (collectively, "Debentures") as at February 28, 2017.  The daily repurchase restriction for the Debentures is (i) $13,083 aggregate principal amount of Series D Debentures; (ii) $21,950 aggregate principal amount of Series E Debentures; and (iii) $15,487 aggregate principal amount of Series F Debentures.

The price which Temple will pay for any such Common Shares and Debentures will be the market price at the time of acquisition.  The actual number of Shares and Debentures which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.

During the 12-month period ended February 28, 2017, no common shares or debentures were purchased for cancellation pursuant to Temple's normal course issuer bids.  As at February 28, 2017, there were 151,619,679 Common Shares outstanding with an average daily trading volume for the six month period ended February 28, 2017 of 87,972. 

As at February 28, 2017, there were $34,282,000 aggregate principal amount of Series D Debentures (34,282 Series D Debentures) outstanding, $45,164,000 aggregate principal amount of Series E Debentures (45,164 Series E Debentures) outstanding, and $34,419,000 aggregate principal amount of Series F Debentures (34,419 Series F Debentures) outstanding.

The average daily trading volume for the 12 month period ended February 28, 2017 in respect of the Debentures was:  (i) $52,333 aggregate principal amount of Series D Debentures; (ii) $87,802 aggregate principal amount of Series E Debentures; and (iii) $61,951 aggregate principal amount of Series F Debentures.

Temple sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect their value.  Temple believes that, in such circumstances, the purchase of Common Shares may represent an attractive use of funds for Temple. 

Temple believes that its Common Shares and Debentures have been trading in a price range which does not adequately reflect the value of such Common Shares and Debentures in relation to the business of Temple and its future business prospects.  As a result, depending upon future price movements and other factors, Temple believes that its outstanding Common Shares and Debentures may represent an attractive investment for itself.  Furthermore, the purchases may benefit all persons who continue to hold Common Shares by increasing their equity interest in Temple.  All Common Shares and Debentures purchased by Temple under the normal course issuer bid will be cancelled.

About Temple Hotels Inc.
Temple is a real estate investment company listed on the TSX under the symbols TPH (common shares), TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures).  Temple invests in hotel properties and assets across Canada, wholly-owning a portfolio of 29 hotel properties, comprising of 3,870 rooms, and participating in 50% of the earnings from two additional hotels, comprising 299 rooms.  For more information, please visit www.templehotels.ca.

SOURCE Temple Hotels Inc.

For further information: Paul Miatello, Chief Financial Officer, T 905-281-3800; Beverley G. Flynn, Vice President, T 905-281-3800

RELATED LINKS
http://templehotels.ca/

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