Retirement REIT starts change-of-control offer for 8.25%, 5.50% convertible debentures

By Jennifer Chiou

New York, Jan. 31 - Retirement Residences Real Estate Investment Trust announced the start of an offer to purchase all of its 8.25% convertibles debentures due Jan. 31, 2011 and 5.50% convertible debentures due March 31, 2015 at 101% plus accrued interest.

The Toronto-based provider of accommodation and care for seniors said that the offer is required following the change of control of the company with its acquisition by PSPIB Destiny Inc. on Jan. 15.

The offer ends at noon ET on March 8.

Holders of the convertible debentures who do not tender will continue to receive interest and principal payments as Retirement REIT said it intends to defease the remaining convertible debentures after the end of the offer. The company said it will deposit cash or direct obligations of the Government of Canada with CIBC Mellon Trust Co. as trustee to pay, satisfy and discharge the entire amount of principal and interest to maturity.

Retirement REIT said it ultimately intends to delist the convertible debentures from the Toronto Stock Exchange.

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