WINNIPEG, June 11, 2013 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) today announced that is has received approval from the Toronto Stock Exchange ("TSX") with respect to a normal course issuer bid (the "NCIB") to purchase up to 10% of the public float of its 8 Year 9.50% Series G redeemable subordinated secured debentures ("Series G Debentures"), representing an aggregate principal amount of up to $2,493,000 (2,493 Series G Debentures);
Purchases of Series G Debentures pursuant the NCIB will be made through the facilities of the TSX. The period of the NCIB will extend from June 17, 2013 until June 16, 2014, or an earlier date should LREIT purchase the maximum number of the Series G Debentures available under the NCIB. LREIT will pay the market price at the time of acquisition for any Debentures purchased through the facilities of the TSX. All Debentures acquired by LREIT under the NCIBs will be cancelled.
As at June 3, 2013, there were 24,961 Series G Debentures (having an aggregate principal amount of $24,961,000) issued and outstanding, 24,936 ($24,936,000) of which comprise the public float. The average daily trading volume of the Series G Debentures for the six-month period ended May 31, 2013 was an aggregate principal amount of $16,968 (approximately 17 Series G Debentures). 25% of the average daily trading volume of the Series G Debentures for the six-month period ended May 31, 2013 is an aggregate principal amount of $4,242 (approximately 4 Series G Debentures).
Under the NCIB, the maximum number of Series G Debentures that may be purchased by LREIT on a daily basis is 4 Series G Debentures ($4,000 aggregate principal amount).
LREIT sought approval of the NCIB because it believes that, from time to time, the market price of the Series G Debentures may not fully reflect their underlying value. LREIT believes that, in such circumstances, the purchase of the Series G Debentures represents an attractive investment for LREIT.
LREIT has not purchased any Series G Debentures in the prior 12-month period.
LREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.G (Series G Debentures), LRT.NT.A (Second Mortgage Bonds due December 24, 2015), LRT.WT (Warrants expiring March 9, 2015) and LRT.WT.A (Warrants expiring December 23, 2015). The objective of LREIT is to provide Unitholders with stable cash distributions from investment in a diversified portfolio of quality real estate properties. For further information on LREIT, please visit our website at www.lreit.com.
The TSX has not reviewed or approved the contents of this press release and neither accepts responsibility for the adequacy or accuracy of this press release.
SOURCE: Lanesborough Real Estate Investment Trust
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [email protected]