Temple gets OK to extend 7.25% convertibles, lower conversion price

By Angela McDaniels

Tacoma, Wash., Sept. 28 – Temple Hotels Inc. received holder approval to amend its 7.25% series E convertible subordinated debentures due Sept. 30, 2017, according to a company news release.

The amendments will

• Decrease the conversion price to C$9.75 from C$40.08 per common share of Temple;

• Extend the maturity date to Sept. 30, 2020 from Sept. 30, 2017;

• Permit Temple to redeem the convertibles, in whole or in part, at any time up to Sept. 30, 2020, at a price equal to par plus accrued interest; and

• Permit Temple to redeem C$2,258,200 principal amount of convertibles, or about 5% of the issued and outstanding convertibles, on Sept. 30 and an additional 5% of the currently issued and outstanding principal amount of convertibles on Sept. 30, 2018 and Sept. 30, 2019.

The redemptions will be made at par plus accrued interest up to but excluding the redemption date.

The holders voted on the amendments at a special meeting on Sept. 28. The deadline for submitting proxies was 10 a.m. ET on Sept. 27.

On Sept. 21, the company made revisions to the consent solicitation. It had originally proposed decreasing the conversion price to C$15.00 per share, and it had committed to redeeming only the C$2,258,200 on Sept. 30, 2017.

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

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