By Sheri Kasprzak
Atlanta, May 4 - Lakeview Hotel Real Estate Investment Trust said it plans to raise C$3.5 million in a private placement of subordinated convertible debentures and class A trust units.
The company will sell up to C$1.5 million in five-year debentures. The debentures bear interest at 9% annually and are convertible into trust units at C$2.90 each for five years.
The company will also sell up to 800,000 class A trust units at C$2.50 each.
Wellington West Capital Inc. is the placement agent in the deal.
Lakeview plans to use the proceeds from the deal to fund the equity commitment associated with its acquisition of the Best Western Black Gold Inn in Drayton Valley, Alta. The remainder will be used for working capital.
The initial closing of the deal is expected for May 30.
In other news, Lakeview said it intends to acquire a second hotel property in Alberta for C$6.55 million. Wellington West will also act as placement agent for a future offering to fund that acquisition.
Based in Winnipeg, Man., Lakeview is a real estate investment trust.
Debentures
| Issuer: | Lakeview Hotel Real Estate Investment Trust
|
| Issue: | Subordinated convertible debentures
|
| Amount: | C$1.5 million
|
| Maturity: | Five years
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | C$2.90
|
| Warrants: | No
|
| Placement agent: | Wellington West Capital Inc.
|
| Pricing date: | May 4
|
| Settlement date: | May 13
|
| Stock price: | C$2.10 at close May 4
|
|
|
| Trust units
|
| Issuer: | Lakeview Hotel Real Estate Investment Trust
|
| Issue: | Trust units
|
| Amount: | C$2 million
|
| Units: | 800,000
|
| Price: | C$2.50
|
| Warrants: | No
|
| Placement agent: | Wellington West Capital Inc.
|
| Pricing date: | May 4
|
| Settlement date: | May 13
|
| Stock price: | C$2.10 at close May 4
|
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