Northampton Group Inc.

Northampton Group Inc.

December 22, 2010 16:30 ET

Northampton to Redeem $3,000,000 of July 23, 2012 Debentures

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2010) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, today announced that it will redeem $3,000,000 of the aggregate principal amount of $5,000,000 of the outstanding 10% Unsecured Debentures first issued July 22, 1997, amended on July 23, 2007 and November 24 2010, and due July 23, 2012 (the "Debentures") on January 22, 2011 (the "Redemption Date"), coincident with the next interest payment date. 

"This redemption represents the best use of our cash at this time," said Vinod Patel, president and CEO of Northampton Group. "Northampton will reduce the carrying costs of its debt while still retaining sufficient cash to take advantage of any accretive opportunities for growth."

The Debentures will be redeemed on a pro rata basis, taking into account the minimum denomination of $1,000 per Debenture. For each $1,000 that is called for redemption, an amount of $1,030 will be paid to the holders of the Debentures, which includes a premium of 3% on the redeemed principal. Interest payable of the interest payment date will be delivered to holders of the Debenture in the same manner as previously and will be separate from the redemption payment. Interest will cease to accrue on the redeemed principal amount from the Redemption Date. CIBC Mellon will make payments to Debenture holders as of the record date of January 18, 2011.

Following the Redemption Date, debenture holders will receive a cheque in payment of the redeemed amount from CIBC Mellon upon presentation of the Debenture certificate at:

CIBC Mellon Trust Company
c/o BNY Trust Company of Canada
320 Bay Street, 11th Floor
Toronto, Ontario M5H 4A6
Attn: Cage

For questions, please contact CIBC Mellon at 1-800-254-2826.

About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 2,002 rooms in 16 hotels, with a selective strategic development program in place. Focused on creating the best return for all stakeholders, Northampton's proven, market-sensitive strategy is to acquire or build hotels that provide superior overnight accommodation in the mid-price market. Northampton has consistently excelled in this sector, offering services that exceed expectations while still posting industry-leading margins.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northampton Group Inc.
    Vinod Patel
    President & CEO
    (905) 629-9992