Temple Hotels plans to seek maturity extension, rate change for 8.5% series B convertibles

By Jennifer Chiou

New York, March 7 - Temple Hotels Inc. announced plans to amend the terms of its C$19,856,100 of outstanding 8.5% five-year convertible redeemable unsecured subordinated debentures.

The company said it will seek holder approval of the following extraordinary resolutions at a meeting in Winnipeg on April 9:

• Changing the interest rate to 7% beginning on April 30, with the interest payable semiannually;

• Extending the maturity date to April 30, 2018 from April 30, 2013;

• Changing the conversion price to C$7.80 per share from C$7.50 per share;

• Continuing Temple's right to redeem the debentures at any time upon notice;

• Eliminating Temple's ability to repay the debentures through the issue of common shares upon redemption or maturity; and

• Eliminating Temple's ability to satisfy its interest payments through the issue of common shares.

The company is seeking approval from holders of at least two-thirds of the votes cast at the meeting.

Temple said it has retained Laurentian Bank Securities Inc. as financial advisor and solicitation agent.

The series B debentures are currently listed on the Toronto Stock Exchange under "TPH.DB.B."

Temple is a real estate investment company based in Winnipeg, Man.

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