Royal Host Real Estate Investment Trust
TSX : RYL.DB.A
TSX : RYL.UN
TSX : RYL.DB.B
TSX : RYL.DB.C
TSX : RYL.DB.D

Royal Host Real Estate Investment Trust

September 08, 2008 18:59 ET

Royal Host REIT Announces Normal Course Issuer Bid for Its 6%, 6.25% and 5.9% Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2008) - Royal Host Real Estate Investment Trust ("Royal Host") (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) announced today that the Toronto Stock Exchange ("TSX") has accepted Royal Host's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Royal Host considers advisable, (i) its 6% convertible unsecured subordinated debentures with a maturity date of October 31, 2015 ("6% Debentures") (Trading Symbol: RYL.DB.B), (ii) 6.25% convertible unsecured subordinated debentures with a maturity date of September 30, 2013 ("6.25% Debentures") (Trading Symbol: RYL.DB.C) and (iii) 5.9% convertible unsecured subordinated debentures with a maturity date of June 30, 2014 ("5.9% Debentures") (Trading Symbol: RYL.DB.D) (the 6% Debentures, 6.25% Debentures and 5.9% Debentures are collectively referred to as the "Debentures").

As of the date hereof, the public float and the issued and outstanding is $54,798,000 6% Debentures. Royal Host intends to purchase for cancellation up to a maximum of $5,480,000 principal amount of the 6% Debentures (5,480 Debentures), being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX.

As of the date hereof, the public float and the issued and outstanding is $58,887,000 6.25% Debentures. Royal Host intends to purchase for cancellation up to a maximum of $5,888,000 principal amount of the 6.25% Debentures (5,888 Debentures), being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX.

As of the date hereof, the public float and the issued and outstanding is $60,000,000 5.9% Debentures. Royal Host intends to purchase for cancellation up to a maximum of $6,000,000 principal amount of the 5.9% Debentures (6,000 Debentures), being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX.

The price which Royal Host will pay for any Debentures purchased by it will be the prevailing market price of the Debentures on the TSX at the time of such purchase. The actual number of Debentures that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.

The Bid will commence on September 10, 2008 and will terminate on September 9, 2009 or such earlier time as the Bid is completed or terminated at the option of Royal Host.

Management of Royal Host believes that, from time to time, the market price of the Debentures may not fully reflect the underlying value of the Debentures and that at such times the purchase of Debentures would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining Debenture holders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's Debenture holders wishing to sell their Debentures.

Royal Host has made purchases of $959,840 trust units and $1,210,000 7.9% convertible unsecured subordinated debentures with a maturity date of April 30, 2009 during the previous 12 months at weighted average prices of $6.45 and $118.95, respectively, under previous normal course issuer bids which will expire January 1, 2009 and November 27, 2008, respectively. The average daily trading volume of the 6% Debentures, 6.25% Debentures and 5.9% Debentures for six months prior to the date hereof was $59,800, $53,000 and 40,800, respectively (25% of the average daily trading volume of the 6% Debentures, 6.25% Debentures and 5.9% Debentures is $14,950, $13,250 and $10,200, respectively).

Royal Host is a uniquely diversified hospitality trust that delivers Unitholder value through hotel ownership, investment, management and franchising. Royal Host's portfolio of Canadian hotels operates under a variety of recognizable brands as well as a number of unbranded properties. The Trust's hotel portfolio is further enhanced by a stable franchising business, a successful hotel management operation, and a portfolio of publicly-traded securities from within the hospitality and service sectors.

Royal Host trust units and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB.A", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D", respectively.

Contact Information

  • Royal Host Real Estate Investment Trust
    A. Brad Cann, C.A.
    Executive Vice President and Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)
    Website: www.royalhost.com