WINNIPEG, June 21 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") announced today that on June 20, 2007 it closed its
previously announced public offering (the "Offering") of 5 year 6.5% Series C
Convertible Redeemable Subordinated Debentures (the "Debentures"). The terms
of the Offering were first announced on June 12, 2007. Pursuant to the closing
of the Offering, Lakeview REIT issued 18,000 Debentures, each having a
principal amount of $1,000, for aggregate gross proceeds of $18,000,000. The
Debentures bear interest at a rate of 6.5% per annum, with semi-annual
interest payments, and will mature on June 30, 2012. At the option of the
holder, the Debentures will be convertible into Class A Units of Lakeview REIT
("Units") at any time prior to the maturity date at a conversion price of
$5.55 per Unit, subject to the provisions of the trust indenture governing the
The Offering was undertaken by a syndicate of agents led by Wellington
West Capital Inc., and including Westwind Partners Inc., Blackmont Capital
Inc., TD Securities Inc., and Desjardins Securities Inc. (collectively the
"Agents") and sold pursuant to a short form prospectus dated June 14, 2007.
The Agents were paid an aggregate commission of 6.0% of the gross proceeds
from the sale of Debentures pursuant to the Offering.
Lakeview REIT intends to use the proceeds of the Offering to fund future
acquisitions of income producing properties and for working capital and
general purposes. As previously announced Lakeview REIT is scheduled to close
the acquisition of the Residence Inn By Marriott in Calgary on June 22, 2007.
The Debentures sold pursuant to the Offering and the additional Units
issuable upon conversion of the Debentures have been conditionally approved
for listing on the TSX Venture Exchange subject to compliance with the normal
requirements of the TSX Venture Exchange.
Lakeview REIT is pleased to confirm its regular monthly distribution. The
Trustees of Lakeview REIT have declared a distribution of $0.0367 per Unit
payable on July 31st, 2007, to Unitholders of record on June 29, 2007. There
are currently 19,118,452 Class A Units and Exchangeable Units issued and
Lakeview REIT is a real estate investment trust, which is listed on the
TSX Venture Exchange under the symbol "LHR.UN". Lakeview REIT receives income
from ownership, management and licensing of hotel properties. Lakeview REIT's
objective is to provide Unitholders with stable and growing cash distributions
through an investment in an expanding portfolio of hotel properties across
Canada. For further information on Lakeview REIT please visit our new website
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the Debentures in the United States. The Debentures
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or the U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
The TSX Venture Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of its contents.
For further information:
For further information: Avrum Senensky, Investor Relations, Tel: (204)
947-1161, Fax: (204) 957-1697, Email firstname.lastname@example.org