MISSISSAUGA, ON, Feb. 23, 2018 /CNW/ - Temple Hotels Inc. (TSX:TPH) ("Temple") announced today that it has agreed terms to enter into a new credit facility with Morguard Corporation ("Morguard") in the amount of $35 million ("Credit Facility B"). The credit facility is for a term of three years and bears interest at the rate of 6.5% per annum. Temple intends to use the proceeds of the Credit Facility B to repay its Series F convertible unsecured subordinated debentures which have a maturity date of March 31, 2018.
Temple's existing credit facility from Morguard ("Credit Facility A") is not impacted by the new agreement. Credit Facility A is a $13.5 million revolving facility, maturing on November 9, 2018, and bears interest at prime plus 2.0%.
Morguard currently owns a 55.9% interest in Temple through its ownership of 14,136,012 common shares.
About Temple Hotels Inc.
Temple is a growth oriented hotel investment company with hotel properties located across Canada. Temple is listed on the TSX under the symbols TPH (common shares), TPH.DB.E and TPH.DB.F (convertible debentures). For further information on Temple, please visit our website at 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