RICHMOND, BC, April 8 /CNW/ - Huntingdon Real Estate Investment Trust (the "Trust" or "HREIT") (TSX: HUNT.UN and HNT.DB.C) today announced that the Toronto Stock Exchange (the "Exchange") has accepted a notice (the "Notice") filed by the Trust of its intention to commence a normal course issuer bid of its outstanding 7.50% Series C convertible redeemable unsecured subordinated debentures (the "Debentures") on the terms set forth in the Notice. At the time of filing of the Notice, the Board of Trustees of the Trust was of the belief, and continues to be of the belief, that the purchase of Debentures from time to time at appropriate prices may lower the risk and increase the cash flow of the Trust's business going forward as purchases are intended to be made with proceeds from the sale of assets as well as new loans which will lower the cost of capital and reduce leverage.
On April 7, 2010, $48,300,000 principal amount of Debentures were outstanding. Under the rules of the Exchange, in the period commencing on April 12, 2010 and ending on April 11, 2011, the Trust may acquire up to $4,748,000 principal amount of Debentures, being 10% of the public float of principal amount of Debentures as at April 7, 2010. If market conditions permit, the Trustees of the Trust presently anticipate that the Trust will acquire up to $4,748,000 principal amount of Debentures, which represents 10% of the public float of principal amount of Debentures as at April 7, 2010 that may be purchased pursuant to the Notice. The average daily trading volume ("ADTV") for the six months prior to the date of the Notice has been $41,000 principal amount of Debentures. The Trust may purchase up to $10,000 principal amount of Debentures per day, being 25% of the ADTV, subject to certain prescribed exemptions.
Any Debentures purchased pursuant to the normal course issuer bid will be cancelled. Debentures will be purchased at the market price of the Debentures at the time of purchase and will be purchased on behalf of the Trust by a registered investment dealer through the facilities of the Exchange. The funding for any purchase of Debentures pursuant to the normal course issuer bid will be financed out of working capital of the Trust.
On January 14, 2009, the Trust implemented a normal course issuer bid for its Debentures over the 12 month period ending January 15, 2010. No Debentures were purchased or cancelled.
HREIT is a real estate investment trust which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns, directly or indirectly, 82 income producing office, industrial, retail and standalone parking lot properties, including the aviation-related facilities at five of Canada's leading international airports that have a total gross leasable area of 5.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include that the Trust may acquire up to $4,749,000 principal amount of Debentures in a normal course issuer bid. The Trust's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industries in which the Trust operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Trust. Further, the Trust's Board of Trustees may consider that market prices or unexpected requirements for the Trust's cash make it unfeasible for it to acquire any of its Debentures.
The forward-looking statements contained in this news release represent the Trust's expectations as of the date hereof, and are subject to change after such date. The Trust disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
The Toronto Stock Exchange 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.
SOURCE HUNTINGDON REAL ESTATE INVESTMENT TRUST
For further information: For further information: Zachary R. George, Trustee, President and Chief Executive Officer, Tel: (604) 249-5119, Fax: (604) 249-5101, Email: email@example.com