Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

March 05, 2007 08:01 ET

Royal Host Reit Announces Full Repayment of 9.25% Convertible Debentures

CALGARY, ALBERTA--(CCNMatthews - March 5, 2007) - Royal Host Real Estate Investment Trust ("Royal Host" or the "Trust") (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C), today announced it disbursed $32.5 million cash to fully retire its 9.25% Convertible Unsecured Subordinated Debentures (the "Debentures"), which matured on March 1, 2007. Pursuant to the terms of the Debenture, $5.6 million were converted, prior to maturity, into approximately 793,000 Trust Units at a price of $7.00 per unit.

Michael L. Jackson, President and Chief Operating Officer of Royal Host stated, "The repayment of these Debentures is an important financial milestone for Royal Host and reinforces our solid financial position. In addition to reducing our overall cost of debt, this means the Trust does not have any further debentures or mortgages becoming due until 2009."

Royal Host's core businesses are hotel ownership, management and franchising. Royal Host owns 37 hotels, comprising 4,500 rooms, manages additional properties for third parties, and franchises 109 locations (including 15 owned by Royal Host) under the Travelodge and Thriftlodge banners.

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.A", "RYL.DB.B" and "RYL.DB.C", respectively.

Contact Information

  • Royal Host REIT
    Michael L. Jackson
    President & Chief Operating Officer
    (403) 259-9800
    (403) 259-8580 (FAX)
    Royal Host REIT
    Wayne King
    Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)