Temple Hotels no longer seeking holder OK to extend 8.5% convertibles

By Angela McDaniels

Tacoma, Wash., March 19 - Temple Hotels Inc. is no longer seeking to change the terms of its C$19,856,100 of outstanding 8.5% convertible redeemable series B subordinated debentures due April 30, 2013, according to a company news release.

The convertibles will be repaid at maturity.

Holders were going to vote on the proposed changes at a meeting on April 9. The meeting has been canceled.

As previously reported, the company proposed the following changes on March 7:

• Lowering the interest rate to 7% beginning April 30;

• Extending the maturity date to April 30, 2018;

• Changing the conversion price to C$7.80 per share from C$7.50 per share;

• Continuing Temple's right to redeem the convertibles at any time upon notice;

• Eliminating Temple's ability to repay the convertibles with common shares upon redemption or maturity; and

• Eliminating Temple's ability to pay interest with common shares.

At least two-thirds of the votes cast at the meeting had to be in favor of the changes in order for them to be made.

Temple had retained Laurentian Bank Securities Inc. as financial adviser and solicitation agent.

Temple is a real estate investment company based in Winnipeg, Man.

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