MISSISSAUGA, ON, Dec. 16, 2016 /CNW/ - Temple Hotels Inc.
("Temple") (TSX: TPH) is pleased to announce the successful
completion of its previously announced rights offering (the "Rights
Offering") in each of the provinces and territories of
Canada.
Upon closing of the Rights Offering, Temple issued 73,866,155
common shares of Temple ("Common Shares") at a price of
$0.6769 per Common Share for
aggregate gross proceeds of $50,000,000. The Rights Offering was
over-subscribed by approximately $14.7
million. Pursuant to the terms of the Rights Offering,
each eligible securityholder was entitled to subscribe for one
Common Share for every 1.0526272 rights held by such
securityholder. There was no stand-by commitment for the Rights
Offering.
Pursuant to the Rights Offering, Temple issued 45,207,688 Common
Shares under the basic subscription privilege and 28,658,467 Common
Shares under the additional subscription privilege. As soon as
practicable, Temple will disclose the number of Common Shares
issued under the Rights Offering to insiders of Temple as a group
under the basic subscription privilege and additional subscription
privilege, to the knowledge of Temple after reasonable inquiry, as
required by applicable securities laws.
In addition, Temple today announced that pursuant to the Rights
Offering and in accordance with the applicable conversion price
adjustment formulas provided in the trust indenture dated
February 15, 2007 between Temple's
predecessor, Temple Real Estate Investment Trust and CIBC Mellon
Trust Company, as supplemented pursuant to the applicable
supplemental indentures (with respect to Temple's Series C
Debentures, Series D Debentures, Series E Debentures), and the
trust indenture dated February 12,
2013 between Temple and BNY Trust Company of Canada (with respect to Temple's Series F
Debentures), the conversion prices of the Series C Debentures,
Series D Debentures, Series E Debentures and Series F Debentures
have been adjusted as follows:
Series of
Debentures
|
Adjusted
Conversion Price
|
Series C
Debentures
|
$4.86
|
Series D
Debentures
|
$5.88
|
Series E
Debentures
|
$6.68
|
Series F
Debentures
|
$6.52
|
The aforementioned adjustments to the conversion prices pursuant
to the rights offering have been confirmed by Temple's auditors,
Scarrow & Donald LLP.
Temple retained National Bank Financial Inc. as its managing
dealer pursuant for the Rights Offering. National Bank Financial
Inc. will be paid a fee of $200,000
due to the successful completion of the Rights Offering.
Temple intends to use the available funds from the Rights
Offering for the purposes identified in the rights offering
circular of Temple dated November 7,
2016. However, there may be circumstances where a
reallocation of the available funds may be necessary. Temple will
reallocate funds only for sound business reasons.
Following completion of the Rights Offering, Temple now has
151,619,679 Common Shares issued and outstanding.
ABOUT TEMPLE
Temple is a real estate investment company listed on the TSX
under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E
and TPH.DB.F (convertible debentures). Temple invests in
hotel properties and assets across Canada, wholly-owning a portfolio of 29 hotel
properties, comprising 3,870 rooms, and participating in 50% of the
earnings from two additional hotels, comprising 299 rooms.
For further information on Temple, please visit our website at
www.templehotels.ca.
This press release contains certain statements regarding the
Rights Offering described herein that could be considered as
forward-looking information. The forward-looking information
is subject to certain risks and uncertainties, which could result
in actual results differing materially from the forward-looking
statements.
SOURCE Temple Hotels Inc.