Lakeview Hotel REIT announces results of the special meeting of the holders of the 8.5% Series D Convertible Redeemable Subordinated Debentures
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WINNIPEG, Sept. 21, 2012 /CNW/ - Lakeview Hotel Real Estate Investment Trust (TSXV:LHR.UN) ("Lakeview REIT" or the "Trust") announced today that the previously announced meeting of the holders (the "Debentureholders") of 8.5% Series D Convertible Redeemable Subordinated Debentures (the "Debentures") was held today. The Trustees are pleased to announce that the Debentureholders have approved all resolutions (the "Extraordinary Resolution") which were placed before them by the Trustees at the meeting as more specifically set out in Schedule "A" to the Management Information Circular (the "Circular") dated August 21, 2012 which was previously filed on SEDAR.
The amendments, as generally described below, will allow the Trust to focus on its current business strategy and to maintain an adequate working capital position by applying cash resources to service current debt.
The Extraordinary Resolution authorizes the Trust to make certain amendments to the trust indenture governing the Debentures, including:
- Extending the maturity date of the Debentures from May 31, 2013 to May 31, 2018;
- Changing the payment of interest from being calculated and payable semi-annually at the rate of 8.5% per annum to being calculated and payable semi-annually in arrears at the rate of 9.0% per annum on May 31 and November 30 in each year, commencing after November 30, 2012. For greater certainty, from June 1, 2012 to November 30, 2012 the applicable interest rate will be 8.5% per annum and from December 1, 2012 to maturity, the interest rate will be 9.0% per annum payable semi-annually in arrears;
- Eliminating the ability of Debentureholders to convert the Debentures into trust units of the Trust ("Units");
- Eliminating the "Change of Control" provision set out in Section 9.1.01 of the Trust Indenture which provided that upon the occurrence of a change of control involving the acquisition of voting control or direction over 66⅔% or more of the Units by any person or group of persons acting jointly or in concert, Debentureholders will have the right to require the Trust to repurchase their Debentures, in whole or in part, at a price equal to 101% of the principal amount of the Debentures, plus accrued and unpaid interest thereon;
- Improving the security granted by the Trust for the repayment of the Debentures by providing that the Debentures shall rank senior in all respects to all future series of debentures issued by the Trust and are subordinate only to senior security (as such term will be defined in the supplemental replacement trust indenture attached to the Circular) and are pari passu with the Series C Redeemable Subordinated Debentures.
The effective date for the foregoing amendments is anticipated to be September 28, 2012.
There are currently $9,980,000 principal amount of Debentures issued and outstanding. Each Debenture has a face value of $100.00. The Debentures are now referred to as the Series D Redeemable Subordinated Debentures and are listed on the TSX Venture Exchange under the trading symbol "LHR.DB.D".
Lakeview REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol "LHR.UN". Lakeview REIT receives income from ownership, management and licensing of hotel properties. For further information on Lakeview REIT please visit our website www.lakeviewreit.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Lakeview Hotel Real Estate Investment Trust
Keith Levit, President, or Avrum Senensky, Executive Vice President
Tel: (204) 947-1161, Fax: (204) 957-1697, Email [email protected]
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