Lakeview Hotel Investment Corp. Announces Results of the Special Meeting of Holders of Series C Redeemable Subordinated Debentures and Results of the Special Meeting of Holders of Series D Redeemable Subordinated Debentures

WINNIPEG, July 25, 2019 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") announced today that the previously announced meetings of the holders of Series C Redeemable Subordinated Debentures (the "Series C Debentures") and the holders of Series D Redeemable Subordinated Debentures (the "Series D Debentures", and together with the Series C Debentures, the "Debentures") was held today.

LHIC is pleased to announce that the holders of the Series C Debentures have approved the resolution (the "Series C Resolution") which was placed in front of them at the meeting as more specifically set out in the Management Information Circular dated June 24, 2019, which was previously filed on SEDAR.  The Series C Resolution passed with 94.55% of the holders of Series C Debentures present in person or represented by proxy at the meeting voting in favour. The Series C Resolution authorizes LHIC to make certain amendments to the trust indenture governing the Series C Debentures as set out in the aforementioned Management Information Circular and as summarized below:

• Extending the maturity date of the Series C Debentures from August 22, 2019 to August 31, 2022;
  
  
• Amending the restrictive covenants in Section 6.04(b) of the Series C Trust Indenture by allowing the Corporation to pay fees, including deferred fees, to Lakeview Management Inc. incurred in the normal course of business using funds generated through the Corporation's operations provided that the Corporation will not pay fees to Lakeview Management Inc. out of proceeds received from the sale or refinance of any of the Corporation's assets, unless all amounts owing pursuant to the Series C Debentures and the Series D Debentures have been paid.
  
  
• Including two additional covenants of the Corporation:
  
  
• The first being a new Section 6.18 requiring that the Corporation refinance its outstanding indebtedness owing to the current holder of Senior Security (as defined in the Series C Trust Indenture) by December 31, 2019
  
  
• The second being a new Section 6.19 requiring that the Corporation will, prior to the Maturity Date, make commercially reasonable best efforts to pay all amounts owing pursuant to the Series C Debentures and pursuant to the Series D Debentures as soon as possible, which the Corporation acknowledges and agrees may include raising additional funds in the public market, refinancing the Series C Debentures with a new lender, and/or selling some or all of its assets.

In order to effect the amendments to the Series C Debentures, LHIC will be required to enter into a supplemental trust indenture with the trustee for the Series C Debentures, BNY Trust Company of Cnada. The amendments to the Series C Debentures will be effective on or about August 1, 2019.

There is currently $18,326,000 principal amount of Series C Debentures issued and outstanding. Each Series C Debenture has a face value of $1,000.00. The Series C Debentures are listed on the TSX Venture Exchange under the trading symbol "LHR.DB.C".

LHIC is further pleased to announce that the holders of the Series D Debentures have approved the resolution (the "Series D Resolution") which was placed in front of them at the meeting as more specifically set out in the Management Information Circular dated June 24, 2019, which was previously filed on SEDAR. The Series D Resolution passed with 96.80% of the holders of Series D Debentures present in person or represented by proxy at the meeting voting in favour. The Series D Resolution authorizes LHIC to make certain amendments to the trust indenture governing the Series D Debentures as set out in the aforementioned Management Information Circular and as summarized below:

• Extending the maturity date of the Series D Debentures from August 22, 2019 to August 31, 2022;
  
  
• Amending the restrictive covenants in Section 6.04(b) of the Series D Trust Indenture by allowing the Corporation to pay fees, including deferred fees, to Lakeview Management Inc. incurred in the normal course of business using funds generated through the Corporation's operations provided that the Corporation will not pay fees to Lakeview Management Inc. out of proceeds received from the sale or refinance of any of the Corporation's assets, unless all amounts owing pursuant to the Series C Debentures and the Series D Debentures have been paid.
  
  
• Including two additional covenants of the Corporation:
  
  
• The first being a new Section 6.18 requiring that the Corporation refinance its outstanding indebtedness owing to the current holder of Senior Security (as defined in the Series D Trust Indenture) by December 31, 2019
  
  
• The second being a new Section 6.19 requiring that the Corporation will, prior to the Maturity Date, make commercially reasonable best efforts to pay all amounts owing pursuant to the Series C Debentures and pursuant to the Series D Debentures as soon as possible, which the Corporation acknowledges and agrees may include raising additional funds in the public market, refinancing the Series D Debentures with a new lender, and/or selling some or all of its assets.  

In order to effect the amendments to the Series D Debentures, LHIC will be required to enter into a supplemental trust indenture with the trustee for the Series D Debentures, BNY Trust Company of Canada. The amendments to the Series D Debentures will be effective on or about August 1, 2019.

There is $10,160,000 principal amount of Series D Debentures issued and outstanding. Each Series D Debenture has a face value of $100.00. The Series D Debentures are listed on the TSX Venture Exchange under the trading symbol "LHR.DB.D".

Lakeview Hotel Investment Corp. is listed on the TSX Venture Exchange under the symbol "LHR". Lakeview Hotel Investment Corp. receives income from ownership, management and licensing of hotel properties.

The TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Lakeview Hotel Investment Corp

Avrum Senensky, Executive Vice President, Tel: [phone], Fax: [phone], Email [email protected]

Related Links

http://www.lakeviewhotels.com