Royal Host set to resume normal course issuer bid for its 6%, 6.25% and 5.9% convertibles

By Susanna Moon

Chicago, Sept. 8 - Royal Host Real Estate Investment Trust said the Toronto Stock Exchange accepted Royal Host's notice of intention to make a normal course issuer bid to purchase its 6% convertible unsecured subordinated debentures due Oct. 31, 2015, its 6.25% convertible unsecured subordinated debentures due Sept. 30, 2013 and its 5.9% convertible unsecured subordinated debentures due June 30, 2014.

Royal Host said it plans to purchase for cancellation up to a maximum of C$4,225,000 principal amount of the outstanding C$42,250,100 of 6% debentures, or about 10% of the public float amount as of Tuesday.

The company said it plans to purchase for cancellation up to C$5,243,000, or 10%, of its C$52,435,000 of 6.25% debentures as well as up to C$5.4 million of its C$54 million of 5.9% debentures.

The purchase price will be the prevailing market price on the exchange date.

The bid will begin on Sept. 10 and end on Sept. 9, 2010.

During the previous 12 months, Royal Host made purchases of $442,000 at a weighted average price of $100.95 of the 7.9% convertible unsecured debentures due April 30, 2009 under a previous normal course issuer bid, which expired Nov. 27, 2008.

Also during that period, Royal Host purchased C$5.48 million of its 6% convertibles, C$5,888,000 of its 6.25% convertibles and C$6 million of its 5.9% convertibles at weighted average prices of $97.12, $78.58 and $59.11, respectively, under previous normal course issuer bids expiring Sept. 9. The bid began on Sept. 10, 2008.

The company said it believes that, from time to time, the market price of the debentures may not fully reflect the underlying value of the securities and that the purchase of the debentures would be in the best interests of Royal Host.

Calgary, Alta.-based Royal Host owns hotels, manages properties and operates franchises.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.