American Hotel Income Properties REIT Completes Bought Deal and Acquisition

American Hotel Income Properties REIT LP (AHIP) completed an offering of subscription receipts. The offering raised gross proceeds of approximately $40.3 million through the issuance of 3,967,500 subscription receipts, which included 517,500 subscription receipts issued as a result of the underwriters electing to exercise in full the over-allotment option. The offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp., and National Bank Financial Inc., and included TD Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., Haywood Securities Inc., Dundee Securities Ltd., and GMP Securities L.P.

On November 21, 2013, AHIP completed the indirect acquisition of a portfolio of four hotel properties, comprising a total of 471 guest rooms, located in metropolitan Pittsburgh, Pennsylvania. The total purchase price for the four hotel properties was approximately US$57.3 million and was satisfied by a combination of approximately US$37.4 million in net proceeds from new senior secured financing and approximately US$19.9 million in cash from the proceeds of the offering. Each subscription receipt was exchanged for one AHIP limited partnership unit on November 21, 2013.

For the offering and the acquisition, AHIP was represented by Farris, Vaughan, Wills & Murphy LLP with a team led by Brian Canfield and including Duncan Reid, Kwang Lim and Robert Veitch. AHIP was represented in certain US commercial real estate and senior secured financing matters by Snell & Wilmer L.L.P. with a team led by Joyce Wright and including Garth Stevens, Marc Currie and Byron Sarhangian.

The underwriters were represented by Blake, Cassels & Graydon LLP with a team led by William Fung and including Eric Moncik, Catherine Youdan and Jessica Hinman (securities); Chris Van Loan and Edward Miller (tax). Andrew White and Frederick Fisher of Greenberg Traurig LLP acted as US counsel to the underwriters.

The previous owners of the hotel properties were represented in the acquisition by Lippes Mathias Wexler Friedman LLP with a team led by Paul Wells.

Lawyer(s)

Firm(s)

Greenberg Traurig LLP Blake, Cassels & Graydon LLP FARRIS Snell & Wilmer LLP