InnVest Real Estate Investment Trust

InnVest Real Estate Investment Trust

March 15, 2011 08:52 ET

InnVest REIT Announces Closing of Public Offering of $50 Million of Stapled Convertible Unsecured Subordinated Debentures, Series F and $25 Million of Stapled Units

TORONTO, ONTARIO--(Marketwire - March 15, 2011) -


InnVest Real Estate Investment Trust (the "REIT") and InnVest Operations Trust ("IOT"), collectively "InnVest" (TSX:INN.UN), announced today that it has closed its previously announced public offering of $50 million aggregate principal amount of 5.75% stapled convertible unsecured subordinated debentures, Series F, due March 30, 2018 (the "Debentures") and 3,600,000 stapled units (the "Units") at a price of $7.00 per Unit for gross proceeds to InnVest of $75.2 million. Each Unit is comprised of one trust unit of the REIT and one non-voting trust unit of IOT. Each $1,000 principal amount of Debentures consists of $850 principal amount of convertible unsecured subordinated debentures, Series F, of the REIT (the "REIT Debentures") and $150 principal amount of convertible unsecured subordinated debentures, Series F, of IOT (the "IOT Debentures"). Each of the REIT and IOT will directly or indirectly through their wholly owned subsidiaries fully guarantee the obligations of the other under the Debentures. The Debentures are convertible, at the option of the holder, into Units at $9.45 per Unit. The Debentures will be listed on the Toronto Stock Exchange under the symbol "INN.DB.F".

The net proceeds from this offering (after deducting the Underwriters' fee and estimated offering expenses) will be used by the REIT as to 85% of the net proceeds and by IOT as to 15% of the net proceeds to fund capital improvements, to fund potential future acquisitions and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.


InnVest Real Estate Investment Trust (the "REIT") is an unincorporated open-ended real estate investment trust which owns a portfolio of 144 hotels across Canada representing approximately 19,000 guest rooms operated under internationally recognized brands. The REIT leases its hotels to InnVest Operations Trust ("IOT"), a taxable investment trust. IOT directly and indirectly holds all of the hotel operating assets, earns revenues from hotel customers and pays rent to the REIT. IOT also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada, and earns revenues from franchising fees.

Each issued and outstanding REIT unit trades together with a non-voting unit of IOT as a "stapled unit" on the Toronto Stock Exchange (the "TSX") under the symbol INN.UN. InnVest's convertible debentures trade on the TSX under the symbols INN.DB.B, INN.DB.C, INN.DB.D, INN.DB.E and INN.DB.F.


Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks and competition. These and other factors are discussed in InnVest's 2009 annual information form which is available at 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
    Kenneth Gibson
    President and Chief Executive Officer
    (905) 206-7100
    (905) 206-7114 (FAX)
    InnVest Real Estate Investment Trust
    Tamara Lawson
    Chief Financial Officer and Corporate Secretary
    (905) 206-7100
    (905) 206-7114 (FAX)