Lanesborough REIT seeks to extend 9½% series G notes by 40 months

By Susanna Moon

Chicago, May 7 - Lanesborough Real Estate Investment Trust said it is proposing to extend the maturity date of its $24,873,800 principal amount of outstanding 9½% series G redeemable subordinated secured debentures due Feb. 28, 2015.

The company is seeking approval to extend the maturity date of the debentures to June 30, 2018 from Feb. 28, 2015.

A bondholder meeting will be held on June 16.

The company's board of trustees has concluded that the extension of the maturity date of the debentures would have a number of benefits, including the elimination of any potential uncertainty regarding the pending maturity of the debentures in February of 2015, according to a company press release.

The company said that the elimination of this uncertainty would encourage holders of warrants to exercise their "in the money" warrants, which, if fully exercised, would result in an equity injection to the company of $6,668,425 by March 9, 2015 and $10,418,250 by Dec. 23, 2015.

The extension also would provide holders with a coupon of 9.5% for an additional 40 months.

Laurentian Bank Securities Inc. is the solicitation agent.

Lanesborough is a REIT based in Winnipeg, Man.

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