Canada NewsWire
HALIFAX, April 8, 2019
/NOT FOR DISTRIBUTION ON UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
HALIFAX, April 8, 2019 /CNW/ - Holloway Lodging Corporation (TSX: HLC) (TSX: HLC.DB) ("Holloway" or the "Company") today announced that it will seek the approval of holders of its Series B 6.25% convertible unsecured subordinated debentures due February 28, 2020 (the "Series B Debentures") to amend certain terms of such debentures at a serial meeting of the holders of Series B Debentures (the "Series B Debentureholders") to be held on April 26, 2019 (the "Meeting").
The proposed amendments to the Series B Debentures consist of:
The Board of Directors and management of the Company believe that the proposed Series B Debenture amendments enhance the Company's strategy of pursuing long-term value creation for the benefit of all its securityholders.
The Board believes that the proposed amendments provide the following advantages:
The amendments to the Series B Debentures will only be effective if passed by an extraordinary resolution of the holders of at least 66⅔% of the principal amount of the Series B Debentures present in person or by proxy at the Meeting and entitled to vote in respect of the amendments.
The Meeting is scheduled to be held at 10:00 a.m. (Eastern Daylight Time) on April 26, 2019 at 3400 One First Canadian Place, Toronto, Ontario, M5X 1A4.
Series B Debentureholders may vote on or before 10:00 a.m. (Eastern Daylight Time) on April 24, 2019 by following the voting instructions set out in the management information circular for the Meeting. Only Series B Debentureholders of record at the close of business on March 25, 2019 will be entitled to vote at the Meeting.
Further particulars of the expected benefits of the proposed amendments will be described in the management information circular of the Company relating to the Meeting, which will be available under the Company's profile on SEDAR at www.sedar.com and which will be mailed to Series B Debentureholders in the coming days.
As of the close of business on April 5, 2019, there is $50,866,000 principal amount of Series B Debentures outstanding.
ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate corporation focused on acquiring, adding value to and operating select service hotels and managing hotels for third parties. Holloway owns 27 hotels with 3,055 rooms. Holloway's shares and debentures trade on the TSX under the symbols HLC and HLC.DB.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to Holloway's future outlook and anticipated events or results and may include statements regarding Holloway's future financial position, business strategy, financial results, plans and objectives. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what Holloway currently expects and there can be no assurance that such statements will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's annual information form for the year ended December 31, 2018, which is available on Holloway's profile on the SEDAR website at www.sedar.com. Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change, except as required by law.
SOURCE Holloway Lodging Corporation
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