MISSISSAUGA, ON, March 8, 2018 /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, 2018 and ending on March 14, 2019, purchase for cancellation up to 1,263,495 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 5,945.
Additionally, Temple may purchase for cancellation up to $4,183,800 aggregate principal amount of Series E convertible redeemable debentures (the "Series E Debentures") (TPH.DB.E) representing 10% of the public float of the Series E Debentures. The daily repurchase restriction is $15,725 aggregate principal amount of Series E Debentures.
The price which Temple will pay for any such Common Shares and Series E Debentures will be the market price at the time of acquisition. The actual number of Shares and Series E Debentures which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.
Under its previous normal course issuer bid, Temple was approved to purchase up to 7,580,983 Common Shares and $4,404,000 aggregate principal amount of Series E Debentures through the facilities of the TSX and/or alternative trading systems. During the last 12-month period no Common Shares or debentures were purchased for cancellation pursuant to Temple's normal course issuer bids. As at March 2, 2018, there were 25,269,913 Common Shares outstanding. Temple's average daily trading volume for the prior six months is 23,792.
As at March 2, 2018, there were $42,905,000 aggregate principal amount of Series E Debentures (42,905 Series E Debentures) outstanding.
The average daily trading volume for the prior six months in respect of the Series E Debentures was $62,900 aggregate principal amount.
Temple sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Series E 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 Series E Debentures have been trading in a price range which does not adequately reflect the value of such Common Shares and Series E 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 Series E 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 Series E Debentures purchased by Temple under the normal course issuer bid will be cancelled.
About Temple Hotels Inc.
Temple is a growth oriented hotel investment company with hotel properties located across Canada. Temple is listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.E and TPH.DB.F (convertible debentures). The primary long‑term investment objectives of the Company are to yield stable and growing cash flows and to maximize the long‑term share value of the Company through the active management of its assets, accretive acquisitions, and the performance of value‑added capital improvement programs on selected properties, as deemed appropriate. 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