Holloway plans issuer bids for 6.25% convertibles, 7.5% convertibles

By Wendy Van Sickle

Columbus, Ohio, Jan. 10 – Holloway Lodging Corp. said it plans to make a normal course issuer bid for its 6.25% convertible unsecured subordinated debentures due Feb. 28, 2020 (series B debentures) and its 7.5% convertible unsecured subordinated debentures due Sept. 30, 2021 (series C debentures).

Each bid will run from Jan. 15 to Jan. 14, 2019.

As of Jan. 10, the public float of the series B debentures was C$49.62 million, and Holloway intends to purchase for cancellation up to a maximum of C$4,962,000 principal amount, or 10% of the public float, according to a company press release.

Under the bid, the company may purchase up to C$9,941 principal amount of the series B debentures per day. As of Jan. 10, there was C$50,866,000 principal amount of the series B debentures outstanding, and the average daily trading volume during the previous six months was C$39,765.

As of Jan. 10, the public float of the series C debentures is C$34,105,000. Holloway plans to purchase for cancellation up to a maximum of C$3,415,000 principal amount, or 10% of the public float outstanding on Jan. 10.

Purchases of the series C debentures are restricted to C$4,875 principal amount per day. As of Thursday, there was C$40,565,000 principal amount of series C debentures outstanding and the average daily trading volume during the previous six months was C$19,425.

The price for the debentures will be the prevailing market price of the notes at the time of purchase. The actual number of debentures that may be purchased for cancellation and the timing of the purchases will be determined by Holloway.

Holloway said it has made the following purchases under its previous normal course issuer bids:

• C$1,321,000 principal amount of series B debentures at a weighted average price of C$95.55; and

• C$7,000 principal amount of series C debentures at a weighted average price of C$98.99.

Holloway said it has entered into an automatic securities purchase plan with a broker to facilitate purchases of the debentures under the bid.

The company received approval to make the issuer bid from the Toronto Stock Exchange.

Holloway is a real estate corporation focused on lodging properties. It is based in Halifax, N.S.

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