Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

October 20, 2005 08:30 ET

Royal Host Real Estate Investment Trust Announces Closing of $60 Million 6.00% Convertible Unsecured Subordinated Debenture Offering

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2005) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) ("Royal Host") has closed its previously announced offering of $60 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures due October 31, 2015 (the "Debentures"), which includes the exercise in full of the underwriters' option. The offering was underwritten by a syndicate of underwriters led by National Bank Financial Inc. and BMO Nesbitt Burns Inc. and including RBC Dominion Securities Inc., CIBC World Markets Inc., Scotia Capital Inc. and TD Securities Inc. The Debentures bear interest at a rate of 6.00% per annum, payable in cash or trust units and are convertible at any time up to maturity at the option of the holder into trust units of Royal Host at a conversion rate of 145.9854 trust units per $1,000 principal amount of Debentures, which is equal to a conversion price of approximately $6.85 per trust unit.

$28 million of the net proceeds of the offering will be used to repay existing indebtedness on income producing properties and the balance to reduce other indebtedness, upgrade and reposition its existing hotel properties and for working capital and general trust purposes.

The securities offered have not been 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Royal Host REIT owns 37 hotels, manages 117 properties and franchises 120 locations representing 18,000 guestrooms in the mid-market to upscale segments. Royal Host also owns the master franchise rights for Travelodge in Canada and provides hotel and resort management services for its portfolio and to third party owned properties.

Royal Host is committed to creating stable and repeatable earnings through high quality assets, efficient operations and exceptional people. Through strategic management and growth of its assets, and ongoing training, communication and teamwork, it is committed to achieving ongoing improvements to its bottom line results. Royal Host Units and Convertible Debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB" and "RYL.DB.A", respectively.

Contact Information