Holloway's normal course bid for $5.18 million convertibles gets OK

By Toni Weeks

San Diego, April 27 - Holloway Lodging Real Estate Investment Trust said that its notice of intention to make a normal course issuer bid for up to C$5,184,400 of its 6.5% convertible debentures due June 30, 2012, representing 10% of its 6.5% debentures as of April 26, was approved by the Toronto Stock Exchange on Wednesday, according to a press release.

The approval allows the trust to purchase the debentures at market prices over a 12-month period beginning on April 29.

All of the 6.5% debentures purchased under the normal course issuer bids will be canceled.

The release said that the trust's management believes that occasionally the 6.5% debentures become available at prices that do not give full effect to their underlying value and that purchasing the debentures as part of the normal course issuer bid represents an investment opportunity for Holloway and an appropriate use of its funds.

The real estate trust, based in Bedford, N.S., focuses on acquiring, owning and operating select and limited-service lodging properties and a small amount of full-service hotels. It currently owns 22 hotels with 2,386 rooms.

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