InnVest Real Estate Investment Trust
TSX : INN.UN

InnVest Real Estate Investment Trust

July 31, 2014 11:40 ET

InnVest REIT Announces Results and Completion of Offer for Series G Convertible Debentures

TORONTO, ONTARIO--(Marketwired - July 31, 2014) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) is pleased to announce the final results of its previously announced substantial issuer bid (the "Offer") to purchase for cancellation up to $28,750,000 aggregate principal amount of its outstanding 6.25% Convertible Unsecured Subordinated Debentures, Series G (the "Series G Debentures") at a purchase price of $1,080 per $1,000 aggregate principal amount of Series G Debentures, plus accrued and unpaid interest.

The Offer expired in accordance with its terms at 5:00 p.m. (Toronto time) on July 30, 2014. The final report provided by the depositary indicated a total of $59,843,000 aggregate principal amount of Series G Debentures had been deposited pursuant to the Offer and not withdrawn as of the time of expiry, representing approximately 52% of the outstanding aggregate principal amount of Series G Debentures. As the aggregate principal amount of Series G Debentures deposited under the Offer exceeds the maximum aggregate principal amount of the Offer, a pro-rata factor will apply such that debentureholders who deposited Series G Debentures will have approximately 48% of the Series G Debentures they deposited purchased by InnVest.

Accordingly, given that all of the conditions of the Offer have been satisfied, InnVest has taken up and forwarded payment to the depositary under the Offer for a total of $28,750,000 aggregate principal amount of Series G Debentures, for total consideration of $31,050,000, plus accrued and unpaid interest up to and including the date of take-up of the Series G Debentures in the aggregate amount of $557,080.48. It is expected that payment for the Series G Debentures tendered and accepted for purchase will be forwarded by the depositary under the Offer to the registered holder of Series G Debentures as soon as practicable and in accordance with the terms of the Offer. Series G Debentures deposited but not purchased will be returned as soon as practicable by the depositary under the Offer to the depositing debentureholders. The purchase of Series G Debentures pursuant to the Offer represents 25% of the outstanding aggregate principal amount of Series G Debentures and after giving effect to the purchase of such Series G Debentures for cancellation, $86,250,000 aggregate principal amount of Series G Debentures remain outstanding.

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 expected timing of payment for the Series G Debentures deposited pursuant to the Offer to the registered holder of Series G Debentures and the return of Series G Debentures not taken up and paid for under the Offer. 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. 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.

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.

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