Temple Hotels adjourns 7.25% convertibles holders meeting to Sept. 28

By Wendy Van Sickle

Columbus, Ohio, Sept. 21 – Temple Hotels Inc. on Thursday adjourned the meeting of its 7.25% series E convertible redeemable unsecured subordinated debentures to 10 a.m. ET on Sept. 28, according to a news release.

The company said the adjournment is intended to give holders more time to consider some proposed revisions to amendments it is seeking to the convertibles.

The deadline for submitting proxies will be 10 a.m. ET on Sept. 27.

As announced on Tuesday, the revised proposed amendments include

• Decreasing the conversion price to $9.75 from $40.08 per share of Temple. Previously, Temple had proposed decreasing the conversion price to $15.00 per share;

• Extending the maturity date to Sept. 30, 2020 from Sept. 30, 2017. This proposed amendment did not change under the revisions announced Tuesday; and

• Permitting Temple to redeem the amended debentures, in whole or in part, at any time up to Sept. 30, 2020, at par plus accrued interest to, but excluding, the redemption date.

If the amendments pass, Temple will redeem C$2,258,200, or about 5%, of the outstanding convertibles on a pro rata basis at par plus accrued interest on each of Sept. 30, 2017, Sept. 30, 2018 and Sept. 30, 2019, for a total of C$6,774,600.

Previously, Temple had committed to redeeming only the C$2,258,200 on Sept. 30, 2017.

“Over the last several weeks we have had discussions with debenture holders and respective investment brokers, and based on this feedback we have received strong support to move forward on these revised amendments,” Rai Sahi, Temple chief executive officer, said in Tuesday’s release.

“We continue to believe that the amendments provide Temple with financial flexibility so that we can continue to focus on key strategic, business and operational targets that will drive the success of the company for all stakeholders.”

Temple’s board of directors unanimously recommends holders of the convertibles vote in favor of the revised amendments.

To pass, holders of at least 66 2/3% of the principal amount of the debentures represented at the meeting must vote in favor of the amendments.

Holders who previously voted for the originally proposed amendments do not need to take any action to have their vote counted in favor of the revised amendments. Holders who have not voted or wish to change their vote may do so by following the instructions set forth on the proxy provided to them.

The company announced its originally proposed amendments on Aug. 18, and the record date to vote at the meeting remains Aug. 18.

The company’s stock (Toronto: TPH) closed at C$3.68 on Aug 17.

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

© 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.