Royal Host seeks to amend 7.5% convertibles, trust indenture of all notes; meeting scheduled

By Susanna Moon

Chicago, Dec. 2 - Royal Host Inc. said it would like to amend the terms of the change-of-control put option under its series C 7.5% convertible unsecured subordinated debentures due Sept. 30, 2018 as well as the trust indenture of all of its notes.

There is $23,757,000 of series B debentures outstanding, $40,661,000 of series C debentures outstanding and $29,142,000 series D debentures outstanding.

The company plans to seek approval from holders of the convertibles at a meeting to be held on Jan. 6 in Halifax, N.S. Holders must be of record at the close of business on Dec. 2.

The note terms allow holders to put the notes under a change of control at a price of 101.

The proposed amendments would consolidate the eight previous supplemental indentures and make amendments of "a housekeeping and clarifying nature," according to a company press release.

The company said its board of directors and management believe the series C debenture amendments and the initial debenture amendments are in the best interests of the company as they "enhance the company's strategy of preserving asset value while maintaining flexibility in pursuing long-term value creation for the benefit of all its security holders."

The proposed amendments require the vote of holders of at least 66 2/3% of the principal amount of the notes represented at the meeting.

Royal Host is a diversified hospitality company based in Halifax, N.S.

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