InnVest completes oversubscribed tender offer for series G convertibles

By Jennifer Chiou

New York, July 31 – InnVest Real Estate Investment Trust said it received tenders for a total of C$59,843,000 principal amount of its series G convertible unsecured subordinated debentures in the completed tender offer for up to C$28.75 million of the securities.

The offer ended at 5 p.m. ET on July 30.

The purchase price is C$1,080 per C$1,000 principal amount, up from the original from C$1,060, plus any accrued interest. The figure represents a premium of C$60 to the closing price of C$1,020 on the Toronto Stock Exchange on June 16 and a premium of about C$64 to the volume-weighted average trading price of C$1,016 on the exchange for the 20 trading days ended June 16, in each case per C$1,000 principal amount.

According to a press release, the tendered amount represents about 52% of the outstanding aggregate principal amount of the debentures.

Because the total tender amount exceeds the cap, the pro-rata factor will be roughly 48%.

InnVest said it has forwarded a total consideration of C$31,050,000 to the depositary, plus accrued interest of C$557,080.48.

There remains C$86,250,000 aggregate principal amount of the debentures outstanding.

As already reported, the conversion price for each InnVest unit to be issued upon conversion of the debentures is C$7.50 rather than C$8.00 originally announced.

The trust units closed at C$5.01 (Toronto: INN.UN) on June 16.

InnVest is a Toronto-based holder of hotel real estate.

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