Lakeview Hotel announces plans for C$10 million five-year convertibles

By Angela McDaniels

Tacoma, Wash., April 4 - Lakeview Hotel Real Estate Investment Trust plans to price C$10 million of five-year series D convertible unsecured redeemable debentures, according to a company news release.

The interest rate and conversion price of the debentures is to be determined.

Wellington West Capital Inc. will be the lead agent.

Lakeview said it will apply to list the debentures on the TSX Venture Exchange.

Proceeds from the offering will be used to establish a mezzanine loan facility, for working capital and for general purposes.

In addition, the REIT announced that it closed the purchase of its 17th hotel, the 75-room Four Points by Sheraton Hotel in Prince George, B.C., and has entered into an arrangement with an independent hotel developer under which Lakeview will provide 12% mezzanine loans for a number of hotels in British Columbia and Alberta. The hotels will be licensed and operated as Lakeview Inns & Suites and will pay license fees to Lakeview Flag Licensing General Partnership.

Lakeview is a hotel-focused real estate investment trust based in Winnipeg, Manitoba.

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