Temple Hotels Inc. announces normal course issuer bids for outstanding debentures

WINNIPEG, MB, April 24, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) today announced that is has received approval from the Toronto Stock Exchange ("TSX") with respect to normal course issuer bids (the "NCIBs") to purchase up to 10% of the public float of each of the:

(a)	5 Year 8.00% Series C convertible redeemable unsecured subordinated debentures of Temple (the "Series C Debentures"), representing an aggregate principal amount of up to $2,299,000 (2,299 Series C Debentures);
(b)	5 Year 7.75% % Series D convertible redeemable unsecured subordinated debentures of Temple (the "Series D Debentures"), representing an aggregate principal amount of up to $3,450,000 (3,450 Series D Debentures);
(c)	5 Year 7.25% Series E convertible redeemable unsecured subordinated debentures of Temple (the "Series E Debentures"), representing an aggregate principal amount of up to $4,600,000 (4,600 Series E Debentures); and
(d)	5 Year 7.00% Series F convertible redeemable unsecured subordinated debentures of Temple (the "Series F Debentures"), representing an aggregate principal amount of up to $3,800,000 (3,800 Series F Debentures).

The Series C Debentures, the Series D Debentures, the Series E Debentures and the Series F Debentures are collectively referred to as the "Debentures".

Purchases of Debentures pursuant the NCIBs will be made through the facilities of the TSX.  The period of each of the NCIBs will extend from April 26, 2013 to April 25, 2014, or an earlier date in respect of a particular NCIB, should Temple purchase the maximum number of the Debentures available under such NCIB.  Temple will pay the market price at the time of acquisition for any Debentures purchased through the facilities of the TSX.  All Debentures acquired by Temple under the NCIBs will be cancelled.

As at April 10, 2013:

(a)	there were 22,990 Series C Debentures (having an aggregate principal amount of $22,990,000) issued and outstanding, all of which comprise the public float.  The average daily trading volume of the Series C Debentures for the six month period ended March 31, 2013 was 21 Series C Debentures. (aggregate principal amount of $21,000). 25% of the average daily trading volume of the Series C Debentures for the six month period ended March 31, 2013 is approximately 5 Series C Debentures (aggregate principal amount of $5,000);
(b)	there were 34,500 Series D Debentures (having an aggregate principal amount of $34,500,000) issued and outstanding, all of which comprise the public float.  The average daily trading volume of the Series D Debentures for the six month period ended March 31, 2013 was 21 Series D Debentures. (aggregate principal amount of $21,000). 25% of the average daily trading volume of the Series D Debentures for the six month period ended March 31, 2013 is approximately 5 Series D Debentures (aggregate principal amount of $5,000);
(c)	there were 46,000 Series E Debentures (having an aggregate principal amount of $46,000,000) issued and outstanding, all of which comprise the public float.  The average daily trading volume of the Series E Debentures for the six month period ended March 31, 2013 was 45 Series E Debentures. (aggregate principal amount of $45,000). 25% of the average daily trading volume of the Series E Debentures for the six month period ended March 31, 2013 is approximately 11 Series E Debentures (aggregate principal amount of $11,000); and
(d)	there were 38,000 Series F Debentures (having an aggregate principal amount of $38,000,000) issued and outstanding, all of which comprise the public float.  The average daily trading volume of the Series F Debentures for the six month period ended March 31, 2013 was 94 Series F Debentures. (aggregate principal amount of $94,000). 25% of the average daily trading volume of the Series F Debentures for the six month period ended March 31, 2013 is approximately 23 Series F Debentures (aggregate principal amount of $23,000); and

Under the NCIBs, the maximum number of Debentures that may be purchased by Temple on a daily basis is as follows:

(a)	5 Series C Debentures ($5,000 aggregate principal amount);
(b)	5 Series D Debentures ($5,000 aggregate principal amount);
(c)	11 Series E Debentures ($11,000 aggregate principal amount); and
(d)	23 Series F Debentures ($23,000 aggregate principal amount).

Temple sought approval of the NCIBs because it believes that, from time to time, the market price of the Debentures (or a particular series of Debentures) may not fully reflect the underlying value of series of Debentures.  Temple believes that, in such circumstances, the purchase of the applicable series of Debentures represents an attractive investment for Temple.

ABOUT TEMPLE
Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (shares), TPH.DB.B, TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.

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: Temple Hotels Inc.

PLEASE CONTACT:

Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: [phone], Fax: [phone], Email: [email protected]