Holloway greenshoe exercise lifts placement of units, convertibles to C$150 million

By Susanna Moon

Chicago, July 18 - Holloway Lodging Real Estate Investment Trust said underwriters exercised an over-allotment option on a private placement of units, bringing the total raised to C$150 million.

The deal priced at C$140 million on May 31 for 17,758,000 units at C$5.35 per unit and C$45 million of 6.5% convertible unsecured subordinated debentures.

Underwriters also received a greenshoe for an additional amount of up to 15% of the offering for 30 days. The syndicate of underwriters was led by Canaccord Capital Corp., which bought an additional 580,000 units and C$6,844,000 of convertible debentures.

The debentures are due June 30, 2012 and are convertible at 162.6 units per C$1,000 principal amount of debentures, or for C$6.15 per unit.

The company stock (Toronto: HRL.UN) closed at C$5.26 on July 17.

The offering was expected to close June 21. The securities will be offered through a prospectus.

Proceeds from the issue will be used for acquisitions, mezzanine lending on hotel developments and for general corporate purposes.

Toronto-based Holloway is a real estate investment trust that purchases and manages a portfolio of hotel properties.

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