InnVest Real Estate Investment Trust
TSX : INN.UN

InnVest Real Estate Investment Trust

July 25, 2014 12:07 ET

InnVest REIT Announces Approval of and Amendments to Its Series G Convertible Unsecured Subordinated Debentures

TORONTO, ONTARIO--(Marketwired - July 25, 2014) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) is pleased to announce that, at the special meeting of its debentureholders held today (the "Meeting"), holders of its convertible unsecured subordinated debentures, series G, due March 31, 2019 (the "Series G Debentures") approved the extraordinary resolution authorizing InnVest and the trustee of the Series G Debentures to enter into a supplemental indenture (the "Supplemental Indenture") amending the trust indenture governing the Series G Debentures (the "Indenture Amendments") in order to:

  1. increase the rate of coupon interest payable per annum on the Series G Debentures from 5.75% to 6.25% effective as of the commencement of the next interest accrual period, being September 30, 2014; and

  2. increase the conversion price for each InnVest trust unit to be issued upon the conversion of one Series G Debenture from $5.80 to $7.50 per trust unit.

The Supplemental Indenture giving effect to the Indenture Amendments was executed today and is now in effect. A copy of the Supplemental Indenture will be available for review on InnVest's SEDAR profile at www.sedar.com.

Accordingly, and subject to the remaining terms and satisfaction of the conditions of the ongoing offer by InnVest to purchase for cash up to $28,750,000 aggregate principal amount of the Series G Debentures at a purchase price of $1,080 for each $1,000 principal amount of Series G Debenture plus accrued and unpaid interest (the "Issuer Bid"), InnVest intends to take-up and pay for Series G Debentures tendered to the Issuer Bid, subject to proration.

For further information about the Issuer Bid, debentureholders are encouraged to read the combined notice of meeting and management information circular, offer to purchase and issuer bid circular of InnVest dated June 18, 2014 as amended and supplemented by the combined supplemental management information circular and notice of variation, change and extension of InnVest dated July 14, 2014, all of which are available on InnVest's SEDAR profile at www.sedar.com.

Debentureholders that wish to tender their Series G Debentures must do so by 5:00 p.m. (Toronto time) on Wednesday July 30, 2014, and should immediately contact their investment advisor or broker to receive instructions on how to do so.

InnVest has appointed Kingsdale Shareholder Services to act as the Solicitation and Information Agent with respect to the Issuer Bid. If you have any questions or require any assistance with respect to the Issuer Bid, including how to tender your Series G Debentures to the Issuer Bid, you may contact the Solicitation and Information Agent by toll-free telephone within Canada and the United States at 1-888-518-6832, collect call outside North America at 1- 416-867-2272 or by email at contactus@kingsdaleshareholder.com.

INNVEST PROFILE

InnVest Real Estate Investment Trust is an unincorporated open-ended real estate investment trust which owns a portfolio of 115 hotels across Canada representing over 14,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada. InnVest's units and convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.

FORWARD LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements. These forward-looking statements include statements with respect to the expiration of the Issuer Bid and the timing of the take-up and payment for the Series G Debentures deposited to the Issuer Bid. These forward- looking statements are based on current expectations of management and involve risks and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. In making such forward-looking statements, management has relied upon a number of material factors and assumptions, including with respect to general economic and financial conditions. Although management of InnVest believes that the expectations with respect to such forward-looking statements are reasonable, such forward-looking statements are subject to known and unknown risks and uncertainties and, accordingly, there can be no assurance that such expectations will prove to be correct. Among the material risks and uncertainties that could cause such differences include, but are not limited to, the risk that the Issuer Bid will not be successfully completed for any reason. Readers are cautioned that the foregoing list is not exhaustive. The forward-looking statements included herein are made as of the date hereof and InnVest disclaims any intention or obligation to update or revise any forward -looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

Contact Information

  • InnVest Real Estate Investment Trust
    Chantal Nappert
    Vice President, Finance and Investor Relations
    (905) 624-7806
    (905) 206-7114 (FAX)
    www.innvestreit.com

    Kingsdale Shareholder Services
    North American Toll Free: 1-888-518-6832
    International Call Collect: 416-867-2272
    contactus@kingsdaleshareholder.com