Lanesborough 5% series G holders approve exchange into trust units

Chicago, Feb. 11 – Lanesborough Real Estate Investment Trust said holders of its outstanding 5% series G redeemable subordinated secured debentures due June 30, 2022 approved an extraordinary resolution allowing the exchange of the debentures and all unpaid interest from Jan. 1, 2016 for trust units in the capital of the REIT, according to a press release.

The meeting for the proposal was held on Friday.

The closing of the exchange transaction is expected to be Feb. 15.

The principal and interest owing on the debentures is anticipated to be C$33 million on the closing date.

Payment in the form of a deemed price of C$0.05 per trust unit due to interest owing will be included.

When the exchange transaction closes, the current debentureholders will hold around 96.98% of the issued and outstanding trust units.

The exchange transaction will effectively transfer control of Lanesborough to the debentureholders from the current holders of trust units.

The trust units will continue to trade on the TSXV under the symbol “LRT.UN.”

The debentures will be delisted after the exchange transaction is completed.

The company is a Winnipeg, Man.-based real estate investment trust that owns property across western Canada, in Ontario and in the Northwest Territories.

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