By Sheri Kasprzak
New York, Aug. 2 - Holloway Lodging Real Estate Investment Trust settled its previously announced private placement of convertible debentures and trust units for C$72 million.
The company issued 11,555,555 trust units at C$4.50 each and subordinated convertible debentures in principal of C$20 million.
The 8% debentures are due in five years and are convertible into trust units at C$5.40 each any time after the second anniversary of closing.
Proceeds will be used to satisfy the cash portion of the purchase price of hotel properties the company intends to purchase. The acquisition is expected to cost C$116 million.
Toronto-based Holloway is a real estate investment trust that purchases and manages a portfolio of hotel properties.
Trust units
| Issuer: | Holloway Lodging Real Estate Investment Trust
|
| Issue: | Trust units
|
| Amount: | C$52 million
|
| Trust units: | 11,555,555
|
| Price: | C$4.50
|
| Warrants: | No
|
| Settlement date: | Aug. 1
|
| Stock symbol: | TSX Venture: HLR
|
| Stock price: | C$4.65 at close Aug. 1
|
|
|
| Convertible debentures
|
| Issuer: | Holloway Lodging Real Estate Investment Trust
|
| Issue: | Subordinated convertible debentures
|
| Amount: | C$20 million
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$5.40
|
| Warrants: | No
|
| Settlement date: | Aug. 1
|
| Stock symbol: | TSX Venture: HLR
|
| Stock price: | C$4.65 at close Aug. 1
|
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