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  • American Hotel Income Properties REIT LP (HOT.UN) has completed its public offering of convertible unsecured subordinated debentures
  • The debentures will begin trading today on the TSX the symbol HOT.DB.V
  • American Hotel intends to use the net proceeds of the offering to fund the redemption of all outstanding convertible unsecured subordinated debentures due on June 30, 2022
  • American Hotel Income Properties REIT LP (HOT.UN) is unchanged trading at C$3.18 per share as of 2:03 p.m. EST

American Hotel Income Properties REIT LP (HOT.UN) completed its public offering of convertible unsecured subordinated debentures.

The debentures will commence trading today on the TSX the symbol HOT.DB.V.

American Hotel has granted the underwriters an overallotment option to purchase up to an additional US$5 million of debentures.

American Hotel intends to use the net proceeds of the offering to fund the redemption of all outstanding convertible unsecured subordinated debentures listed under the symbol HOT.DB.U.

Later today, American Hotel will issue a notice of redemption to the registered holders of the debentures.

The redemption date of the 2022 debentures will be on December 31, 2021.

The debentures are redeemable for an amount equal to their principal amount plus accrued and unpaid interest up to the redemption date.

The debentures are convertible at the option of the holder into limited partnership units of American Hotel at any time prior to maturity at US$4.95 per unit.

The conversion price of the debentures represents a conversion rate of approximately 202.0202 units for each US$1,000 principal amount of debentures, subject to adjustment in accordance with the trust indenture.

The debentures bear interest at a rate of 6 per cent per annum and will be payable semi-annually with the first payment commencing on June 30, 2022.

The debentures will not be redeemable by American Hotel prior to December 31, 2024.

Between December 31, 2024, to December 31, 2025, the debentures will be redeemable, in whole or in part, at a price equal to par plus accrued and unpaid interest, at American Hotel option, provided that the volume-weighted average trading price of the units on the TSX is not less than 125 per cent of the conversion price.

American Hotel Income Properties REIT LP 6 per cent Convertible Unsecured Subordinated Debentures are unchanged trading at $98.75 per share as of 1:59 p.m. EST.

American Hotel Income Properties REIT LP 6 per cent Convertible Unsecured Subordinated Debentures are down 0.01 per cent and are trading at $100.01 per share as of 2:01 p.m. EST.

American Hotel Income Properties REIT LP (HOT.UN) is unchanged trading at C$3.18 per share as of 2:03 p.m. EST.

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