Tender offer begins for CHIP's 6% convertibles

By Angela McDaniels

Seattle, Aug. 15 - British Columbia Investment Management Corp. has begun a tender offer for the C$60 million 6% convertible debentures due 2014 of Canadian Hotel Income Properties Real Estate Investment Trust (CHIP), according to a news release.

Holders who tender will receive C$1,625.53 per C$1,000 principal amount of debentures.

CHIP said its trustees unanimously recommend acceptance of the offer, which is open until Sept. 20.

British Columbia Investment is also offering C$19.10 cash for each of CHIP's units. The company's C$1.2 billion acquisition of CHIP is conditioned upon the receipt of regulatory approvals and two-thirds of the outstanding units being tendered. The transaction is expected to close in the third quarter.

Computershare Investor Services Inc. is the depositary for the tender offer, and Georgeson Shareholder Communications Canada Inc. (888 605-7640) is the information agent.

CHIP is a hotel REIT based in Vancouver, B.C.

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