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Lakeview Hotel debenture, common stock holders OK arrangement
By Wendy Van Sickle
Columbus, Ohio, Dec. 15 – Lakeview Hotel Investment Corp. said holders of its series C and series D redeemable subordinated debentures as well as holders of its common shares approved a planned acquisition at meetings held Wednesday, according to a news release.
As previously reported, if completed, the proposed acquisition will see 13487326 Canada Inc. buy all of Lakeview’s series C and D debentures, according to a news release.
The buyer will purchase all of the series C and D debentures for C$74.03 per C$1,000 principal amount for a total consideration of C$1,356,673.78 for the series C debentures and C$752,144.80 for series D debentures.
Any and all accrued interest owing to the debenture holders will be extinguished.
Additionally, 13487369 Canada Inc. will acquire all outstanding common shares of Lakeview for C$0.02 apiece in cash for a total consideration of C$391,156.12. The share purchaser will pay Lakeview about C$15 million to pay all amounts Lakeview owes to its lending syndicate led by ATB Financial.
The buyers are newly formed private companies managed by First Canadian Management Corp.
The proposal was approved by holders of 9,869.2, or 94.44%, of the series C debentures and 53,060, or 92.37%, of the series D debentures.
Holders of 11,216,702, or 95.32%, of the common shares approved the arrangement.
The transaction, which would be completed by way of a plan of arrangement, is expected close around Dec. 20. It is subject to approval by the Manitoba Court of Queen's Bench.
Lakeview Hotel Investment is based in Winnipeg, Man., and receives income from ownership, management and licensing of hotel properties.
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