InnVest REIT Announces Public Offering of $100 Million of Convertible Unsecured Subordinated Debentures
TORONTO, ONTARIO--(Marketwire - Feb. 6, 2013) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
InnVest Real Estate Investment Trust (the "REIT") (TSX:INN.UN), announced today that it has reached an agreement with a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets Inc. and CIBC, with RBC Capital Markets acting as bookrunner, to issue to the public, subject to regulatory approval, on a bought deal basis, $100 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures due March 31, 2019 (the "Debentures"). The Debentures are convertible, at the option of the holder, into trust units of the REIT at $5.80 per trust unit.
The net proceeds from this offering (after deducting the Underwriters' fee and estimated offering expenses) are intended to be used primarily by the REIT to repay the REIT's outstanding Series B 6.00% Convertible Unsecured Subordinated Debentures. The balance of the net proceeds will be used by the REIT for general corporate purposes, which may include funding its capital improvement program.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.
InnVest REIT is an unincorporated open-ended real estate investment trust which owns a portfolio of 135 hotels across Canada representing approximately 18,000 guest rooms operated under internationally recognized brands. InnVest REIT also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest REIT's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.B, INN.DB.C, INN.DB.D, INN.DB.E and INN.DB.F.
FORWARD LOOKING STATEMENTS
Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks, competition and the status of InnVest REIT as a Qualified REIT for Canadian federal income tax purposes in any year. These and other factors are discussed in InnVest REIT's annual information form for the year ended December 31, 2011, which is available at www.sedar.com. InnVest REIT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.
FOR FURTHER INFORMATION PLEASE CONTACT:
InnVest Real Estate Investment Trust
Executive Director, Investor Relations
(905) 206-7114 (FAX)