Real Estate — January 7, 2013Royal Host Inc. Announces Normal Course Issuer Bids for Its 5.9%, 6.0% and 7.5% Convertible Unsecured Subordinated Debentures
HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 7, 2013) - Royal Host Inc. (TSX:RYL) (TSX:RYL.DB.D) (TSX:RYL.DB.B) (TSX:RYL.DB.C) ("Royal Host") 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 5.9% convertible unsecured subordinated debentures with a maturity date of June 30, 2014 ("5.9% Debentures") (Trading Symbol: RYL.DB.D), (ii) 6.0% convertible unsecured subordinated debentures with a maturity date of October 31, 2015 ("6.0% Debentures") (Trading Symbol: RYL.DB.B) and (iii) 7.5% convertible unsecured subordinated debentures with a maturity date of September 30, 2018 ("7.5% Debentures") (Trading Symbol: RYL.DB.C) (the 5.9% Debentures, 6.0% Debentures and 7.5% Debentures are collectively referred to as the "Debentures").
As of December 31, 2012, the 5.9% Debentures public float is $31,044,000. Royal Host intends to purchase for cancellation up to a maximum of $3,104,400 principal amount of the 5.9% Debentures (3,104 Debentures), being approximately 10% of Royal Host's public float outstanding on the date hereof, calculated in accordance with the rules of the TSX. Repurchases are restricted to a maximum of $9,000 in principal per day in accordance with the rules of the TSX. As of the date hereof, there was $31,119,000 in aggregate principal amount of the 5.9% Debentures issued and outstanding.
As of December 31, 2012, the 6.0% Debentures public float is $25,719,000. Royal Host intends to purchase for cancellation up to a maximum of $2,571,900 principal amount of the 6.0% Debentures (2,572 Debentures), being approximately 10% of Royal Host's public float outstanding on the date hereof, calculated in accordance with the rules of the TSX. Repurchases are restricted to a maximum of $5,000 in principal per day in accordance with the rules of the TSX. As of the date hereof, there was $25,744,000 in aggregate principal amount of the 6.0% Debentures issued and outstanding.
As of December 31, 2012, the 7.5% Debentures public float is $45,032,000. Royal Host intends to purchase for cancellation up to a maximum of $4,503,200 principal amount of the 7.5% Debentures (4,503 Debentures), being approximately 10% of Royal Host's public float outstanding on the date hereof, calculated in accordance with the rules of the TSX. Repurchases are restricted to a maximum of $19,000 in principal per day in accordance with the rules of the TSX. As of the date hereof, there was $45,166,000 in aggregate principal amount of the 7.5% Debentures issued and outstanding.
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 January 9, 2013 and will terminate on January 8, 2014 or such earlier time as the Bid is completed or terminated at the option of Royal Host. The purchases will be completed through the facilities of the Toronto Stock Exchange.
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 $3,805,000 of the 5.9% Debentures, $457,000 of the 6.0% Debentures and $2,986,000 of the 7.5% Debentures at weighted average prices of $72.85, $76.26 and $85.10 respectively, under previous normal course issuer bids which expired September 11, 2012. The average daily trading volume of the 5.9% Debentures, 6.0% Debentures and 7.5% Debentures for six months prior to the date hereof was $38,924, $22,346 and $79,691, respectively.
About Royal Host
Royal Host is a diversified hospitality company that delivers shareholder value through hotel ownership, investment and franchising. The Company's hotels, which contain approximately 2,957 rooms, are located in five Provinces and Territories across Canada. Twenty of the Company's hotels operate under internationally recognized brands such as Travelodge®, Super 8®, Holiday Inn®, Hilton®, Ramada® and Country Inns & Suites®. Three of the Company's hotels are independently branded. In addition to its real estate holdings, the Company owns and operates the Travelodge Canada franchise business which is currently comprised of over 90 hotels across nine Provinces and Territories.
Royal Host's common shares and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL", "RYL.DB.D", "RYL.DB.B" and "RYL.DB.C" respectively.
This press release contains certain forward-looking statements relating, but not limited to, Royal Host's operations, anticipated financial performance, business prospects, and strategies. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such factors include, but are not limited to, economic, competitive, and lodging industry conditions. Royal Host disclaims any responsibility to update any such forward-looking statements except as required by Law.
This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
Royal Host Inc.
Chief Financial Officer
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