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Holloway approved to amend 6.25% convertibles, extend by three years
By Wendy Van Sickle
Columbus, Ohio, April 26 – Holloway Lodging Corp. said it received holder approval to make some amendments to its 6.25% convertible unsecured subordinated debentures due Feb. 28, 2020, series B.
At a meeting held Friday morning, holders of 32.2% of the outstanding C$50,866,000 of debentures voted, with 93.8% of the votes cast in favor of the company’s proposed amendments, according to a news release.
The approved amendments will extend the debentures’ maturity date by three years to Feb. 28, 2023 from Feb. 28, 2020 and amend the conversion price to C$12.50 for a conversion rate of 80 common shares of the company per C$1,000 principal amount.
Prior to the amendments taking effect, the debentures are currently convertible into C$285.71 in cash and 28.57 common shares per C$1,000 principal amount.
Holloway gained approval to amend the redemption provision to, among other things, prohibit the company from redeeming the debentures until June 1, 2020, except in connection with a change of control of the corporation resulting in the acquisition of 100% of its voting or equity interests and except, for the 60 days following the effective date of the debenture amendments, to allow the corporation to redeem up to 10% of the principal amount of the debentures at par plus accrued interest.
The company’s board of directors and management believe the proposed amendments enhance Holloway’s “strategy of pursuing long-term value creation for the benefit of all its securityholders,” according to a previous news release.
For passage, the amendments required approval by holders of at least 66 2/3% of the principal amount of the debentures present in person or by proxy at an upcoming meeting.
Holloway is a real estate corporation focused on lodging properties. It is based in Halifax, N.S.
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