MISSISSAUGA, ON, July 5, 2017 /CNW/ - Temple Hotels Inc. (TSX:TPH)
("Temple") announced today that its Series D 7.75% convertible
debentures were repaid in full with accrued interest at their
June 30, 2017 maturity date.
The principal balance outstanding of the Series D convertible
debentures at maturity was $34.3
million.
Temple is also announcing a binding agreement for the
refinancing of a five-loan mortgage portfolio with the incumbent
lender, a Canadian chartered bank. The five loans are cross
collateralized and it is expected the loans will close in the third
quarter of 2017. Three of the five loans were refinanced for a
five-year term at an interest rate of 5.20% and are not subject to
any financial covenants during the first 12 months of the term.
As a condition of refinancing, Temple will pay down the
maturing, aggregate balance by $7.5
million. The fourth mortgage loan of five in the
portfolio does not mature until November
2019 and the fifth loan has been extended for 12 months as
these properties are currently listed for sale.
Temple has also entered into a revolving credit facility with a
Canadian chartered bank for a maximum loan of $16.5 million at a floating rate of interest
equivalent to the 30-day Bankers' Acceptance rate plus 350 basis
points. The credit facility, which has a term of two years,
is secured by two hotel properties located in Yellowknife, Northwest Territories. The
two Yellowknife properties were
unfinanced prior to entering into the credit facility.
Temple also announces the refinancing of a hotel property
located in Sudbury, Ontario, in
the amount of $8.4 million, at an
interest rate of 4.69% for a term of seven years. The
refinanced amount is equivalent to the maturing principal
balance.
As a result of the refinancings described above, Temple has
resolved five of the ten covenant violations reported at
March 31, 2017. Temple
continues to work diligently with its lenders to resolve its
remaining mortgage covenant violations, which have primarily been
caused by the downturn in oil-dependent markets.
Rai Sahi, Chief Executive
Officer, commented, "We appreciate the ongoing support of our
lenders for their commitment to the long-term success of
Temple. The terms of these new financings provide financial
flexibility so that Temple can continue to focus on key strategic,
business and operational targets that will drive the success of the
Company for all stakeholders".
About Temple Hotels Inc.
Temple is a growth oriented hotel investment company with hotel
properties located across Canada.
Temple is listed on the Toronto Stock Exchange under the symbols
TPH (common shares), TPH.DB.E and TPH.DB.F (convertible
debentures). The primary long‑term investment objectives of the
Company are to yield stable and growing cash flows and to maximize
the long‑term share value of the Company through the active
management of its assets, accretive acquisitions, and the
performance of value‑added capital improvement programs on selected
properties, as deemed appropriate. For further information on
Temple, please visit our website at www.templehotels.ca.
SOURCE Temple Hotels Inc.