Temple Hotels Inc.

TSX : TPH


December 09, 2013 15:37 ET

Temple Hotels Inc. Announces $50 Million Offering of Common Shares

WINNIPEG, MANITOBA--(Marketwired - Dec. 9, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Temple Hotels Inc. ("Temple") (TSX:TPH) today announced that it has reached an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and Cormark Securities Inc. (collectively, the "Underwriters") to issue on a bought deal basis 8,621,000 common shares (the "Common Shares") at a price of $5.80 per Common Share representing gross proceeds of approximately $50 million (the "Offering"). Temple has also granted the Underwriters an over-allotment option exercisable at any time up to 48 hours prior to the date of closing of the Offering to offer for sale up to an additional 1,293,150 Common Shares at the issue price which, if fully exercised, would result in additional gross proceeds of approximately $7.5 million.

Temple will use the net proceeds from the Offering to fund additional acquisitions of income-producing hotel properties, to repay existing debt, and/or for general corporate purposes.

The terms of the Offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The Offering is expected to close on or about December 18, 2013 and is subject to regulatory approvals including the approval of the Toronto Stock Exchange ("TSX") and securities regulatory authorities.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Common Shares will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

ABOUT TEMPLE

Temple is a real estate investment company listed on the TSX under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.

This press release contains certain statements that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements.

The TSX has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Temple Hotels Inc.
    Arni Thorsteinson
    Chief Executive Officer
    (204) 475-9090
    (204) 452-5505 (FAX)

    Temple Hotels Inc.
    Gino Romagnoli
    Executive Vice President
    (204) 475-9090
    (204) 452-5505 (FAX)
    info@templehotels.ca
    www.templehotels.ca