Royal Host Inc.

TSX : RYL
TSX : RYL.DB.B
TSX : RYL.DB.C
TSX : RYL.DB.D


Royal Host Inc.

January 06, 2014 10:30 ET

Royal Host Inc. Announces the Successful Amendment of the Terms of Its Series C Debentures Due September 30, 2018 and Its Principal Trust Indenture Dated February 21, 2002

HALIFAX, NOVA SCOTIA--(Marketwired - Jan. 6, 2014) - At meetings of its Debentureholders held today, Royal Host Inc. (the "Company") (TSX:RYL) (TSX:RYL.DB.D) (TSX:RYL.DB.C) (TSX:RYL.DB.B) obtained the approval of certain amendments to the Company's Series C Debentures and Principal Trust Indenture. At the Series C Debentureholder Meeting, 79% of the Series C Debentures voted were in favour of the proposed amendments. At the Debentureholder Meeting, 92% of the Debentures voted were in favour of the proposed amendments.

The extraordinary resolution passed by the Series C Debentureholders removes the provisions related to a change of control of the Company, whereby the Series C Debentureholders, upon a change of control, have the right to require the Company to purchase such holder's Series C Debentures at a price equal to 101% of the principal amount.

The extraordinary resolution passed by the Debentureholders makes certain amendments to the Principal Trust Indenture to, among other things, consolidate the eight previous supplemental indentures and make certain amendments of a housekeeping and clarifying nature.

All proposed amendments will take the form of, and be effective on the signing of, an Amended and Restated Trust Indenture by the Company and Computershare Trust Company of Canada, which is anticipated to occur within several business days.

Michael Rapps, Chairman of the Company, stated: "We have now amended the terms of all our outstanding debentures in a manner that provides the Company with additional flexibility to manage its operations and increase stakeholder value going forward. We thank all of our debentureholders for their support during this process. We do not anticipate further amendments to any of our debentures in the near term."

There are currently $93,473,000 Debentures outstanding, consisting of $23,732,000 Series B Debentures, $40,661,000 Series C Debentures, and $29,080,000 Series D Debentures.

The Debentures, subject to regulatory approval, will trade on the TSX under the symbols "RYL.DB.B", "RYL.DB.C", and "RYL.DB.D".

Forward Looking Statements

This press release may contain certain forward-looking statements relating, but not limited to, the Company's operations, anticipated financial performance, business prospects, and strategies. Forward- looking information typically contains statements with words such as "anticipate", "does not anticipate", "believe", "estimate", "forecast", "intend", "expect", "does not expect", "could", "may", "would", "will", "should", "budgeted", "plan" or other similar terms and expressions suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from further results expressed, projected or implied by such forward-looking statements. Readers are therefore cautioned that the Company's expectations, estimates and assumptions, although considered reasonable, may prove to be incorrect and readers should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are not guarantees of future performance and involve certain risks, uncertainties and other factors that are difficult to predict, and could result in the outcome of such events being materially different from those set out in this news release, including, in particular, the terms, timing and success of any debenture amendments and the refinancing or conversion risk associated with the maturity of the debentures. The Company has no intention and undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances, unanticipated events or circumstances, or should its estimates or assumptions change, after the date hereof, except as expressly required by law.

About Royal Host Inc.

Royal Host Inc. is a diversified hospitality company. Royal Host currently owns 19 hotels with 2,611 rooms across Canada. Royal Host also owns and operates the Travelodge Canada franchise business which is currently comprised of over 90 hotels across Canada. Royal Host's common shares and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D" respectively.

Contact Information

  • Royal Host Inc.
    Michael McFeters
    Chief Financial Officer
    902-470-4500