New Issue: Legacy Hotels C$125 million convertibles yield 7.75%, up 7.0%

By Ronda Fears

Nashville, Tenn., Jan. 30 - Legacy Hotels REIT sold C$125 million of five-year convertible notes at par to yield 7.75% and with a 7.0% initial conversion premium via lead manager RBC Capital Markets.

A source at RBC said the terms were so generous because of a high distribution on the common shares of Legacy Hotels.

The Toronto-based hotel operator said proceeds would be used to repay debt, future acquisitions and profit improving projects.

Terms of the new deal are:

Issuer: Legacy Hotels REIT.

Amount: C$125 million

Greenshoe: C$25 million

Lead Manager: RBC Capital Markets

Maturity Date: March 1, 2007

Coupon: 7.75%

Issue Price: par

Yield: 7.75%

Conversion Premium: 7%

Conversion Price: C$8.75

Conversion Ratio: 11.4286

Settlement Date: Feb. 14

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