Royal Host extends issuer bid for convertibles, lifts pricing

By Jennifer Chiou

New York, Nov. 30 - Royal Host Inc. announced another extension of its substantial issuer bid for two series of its convertibles as well as increased pricing terms.

The bid will now end at 5 p.m. ET on Dec. 16, extended from Dec. 12 most recently and the initial deadline of Nov. 25 before that.

As announced on Oct. 17, the company is offering to buy up to C$15 million principal amount of its series B 6% convertible subordinated debentures due 2015 and up to C$10 million principal amount of its series D 5.9% convertible subordinated debentures 2014.

Royal Host is now offering C$760, up from C$720, per C$1,000 principal amount of series B 6% convertibles and C$820, up from C$770, per C$1,000 principal amount of series D 5.9% convertibles.

Holders will also receive accrued interest.

In addition, Royal Host said in a news release that it has entered into lock-up agreements with North Pole Capital Master Fund and Geosam Capital Inc., under which North Pole will tender an aggregate of about C$2.7 million of the series B debentures along with about C$5.1 million of the series D securities. Geosam has agreed to tender an aggregate of roughly C$1.6 million of the series D convertibles.

Royal Host owns and operates hotels. It is based in Halifax, N.S.

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