WINNIPEG, Nov. 29, 2016 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") announced today that the previously announced
meetings of the holders of Series C Redeemable Subordinated
Debentures (the "Series C Debentures") and the holders of
Series D Redeemable Subordinated Debentures (the "Series D
Debentures", and together with the Series C Debentures, the
"Debentures") was held today.
LHIC is pleased to announce that the holders of the Series C
Debentures have approved the resolution (the "Series C
Resolution") which was placed in front of them at the meeting
as more specifically set out in the Management Information Circular
dated October 27, 2016, which was
previously filed on SEDAR. The Series C Resolution passed
with 89.89% of the holders of Series C Debentures present in person
or represented by proxy at the meeting voting in favour. The Series
C Resolution authorizes LHIC to make certain amendments to the
trust indenture governing the Series C Debentures as set out in the
aforementioned Management Information Circular and as summarized
below:
- Extending the maturity date of the Series C Debentures from
June 30, 2017 to August 22, 2019;
- Changing the interest rate payable on the Series C Debentures
from 8.0% per annum to 7.0% per annum;
- Changing the payment of interest from being payable
semi-annually to being payable on the maturity date (as amended
above) which includes the interest accrued since June 30, 2016, the last interest payment date, to
the date hereof; and
- Including two additional restrictive covenants to Section 6.04
of the Series C Trust Indenture:
- the first being to restrict the payment of deferred fees by the
Corporation to Lakeview Management Inc. that would reduce the
deferred fee balance owing to Lakeview Management Inc. to under
$3.1 million until such time as all
accrued and unpaid interest on the Series C Debentures has been
paid to the Series C Debentureholders. In connection with the
foregoing, the Corporation acknowledges that any of the
$3.1 million deferred fees referred
to above outstanding as of the maturity date (as amended above) are
subordinate to repayment of the principal amount outstanding under
the Series C Debentures along with any accrued and unpaid interest
payable thereon; and
- the second to provide that the Corporation may not increase the
principal amount of senior debt (other than in connection with the
Corporation's hotel in Prince George,
British Columbia) beyond the amount outstanding as at the
date of the third supplemental indenture unless either (i) Series C
Debentureholder approval has been obtained or (ii) the amount in
excess of such principal amount is used to pay down the accrued
interest and principal on the Series C Debentures and the
Corporation's Series D Redeemable Subordinated Debentures on a pro
rata basis.
In order to effect the amendments to the Series C Debentures,
LHIC will be required to enter into a supplemental trust indenture
with the trustee for the Series C Debentures, CIBC Mellon Trust
Company. The amendments to the Series C Debentures will be
effective on or about November 28,
2016.
There is currently $18,326,000
principal amount of Series C Debentures issued and outstanding.
Each Series C Debenture has a face value of $1,000.00. The Series C Debentures are listed on
the TSX Venture Exchange under the trading symbol "LHR.DB.C".
LHIC is further pleased to announce that the holders of the
Series D Debentures have approved the resolution (the "Series D
Resolution") which was placed in front of them at the meeting
as more specifically set out in the Management Information Circular
dated October 27, 2016, which was
previously filed on SEDAR. The Series D Resolution passed with
86.29% of the holders of Series D Debentures present in person or
represented by proxy at the meeting voting in favour. The Series D
Resolution authorizes LHIC to make certain amendments to the trust
indenture governing the Series D Debentures as set out in the
aforementioned Management Information Circular and as summarized
below:
- Extending the maturity date of the Series D
Debentures from May 31, 2018 to
August 22, 2019;
- Changing the interest rate payable on the Series D Debentures
from 9.0% per annum to 7.0% per annum;
- Changing the payment of interest from being payable
semi-annually to being payable on the maturity date (as amended
above) which includes the interest accrued since May 31, 2016, the last interest payment date, to
the date hereof; and
- Including two additional restrictive covenants to Section 6.04
of the Series D Trust Indenture:
- the first being to restrict the payment of deferred fees by the
Corporation to Lakeview Management Inc. that would reduce the
deferred fee balance owing to Lakeview Management Inc. to under
$3.1 million until such time as all
accrued and unpaid interest on the Series D Debentures has been
paid to the Series D Debentureholders. In connection with the
foregoing, the Corporation acknowledges that any of the
$3.1 million deferred fees referred
to above outstanding as of the maturity date (as amended above) are
subordinate to repayment of the principal amount outstanding under
the Series C Debentures along with any accrued and unpaid interest
payable thereon; and
- the second to provide that the Corporation may not increase the
principal amount of senior debt (other than in connection with the
Corporation's hotel in Prince George,
British Columbia) beyond the amount outstanding as at the
date of the third supplemental indenture unless either (i) Series D
Debentureholder approval has been obtained or (ii) the amount in
excess of such principal amount is used to pay down the accrued
interest and principal on the Series D Debentures and the
Corporation's Series C Redeemable Subordinated Debentures on a pro
rata basis.
In order to effect the amendments to the Series D Debentures,
LHIC will be required to enter into a supplemental trust indenture
with the trustee for the Series D Debentures, CIBC Mellon Trust
Company. The amendments to the Series D Debentures will be
effective on or about November 28,
2016.
There is $10,160,000 principal
amount of Series D Debentures issued and outstanding. Each Series D
Debenture has a face value of $100.00. The Series D Debentures are listed on
the TSX Venture Exchange under the trading symbol "LHR.DB.D".
Lakeview Hotel Investment Corp. is listed on the TSX Venture
Exchange under the symbol "LHR". Lakeview Hotel Investment Corp.
receives income from ownership, management and licensing of hotel
properties.
The TSX Venture Exchange nor its Regulation Service Provider
(as the term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Lakeview Hotel Investment Corp