Legacy Hotels REIT Completes Convertible Debenture Offering

On February 14, 2002, Legacy Hotels REIT completed a bought deal offering of $150 million principal amount of 7.75 per cent convertible unsecured subordinated debentures to mature April 1, 2007. The debentures are convertible into units of Legacy at the option of holders at any time at $8.75 per unit. The debentures are redeemable in certain circumstances. The principal amount of the debentures is repayable, at the option of Legacy, upon redemption or maturity, in cash or through the issuance of units of Legacy. The underwriting syndicate for the offering was led by RBC Dominion Securities Inc., and included CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc. Legacy is the owner of numerous landmark Canadian hotels.

McCarthy Tétrault LLP’s Philip Moore, David Woollcombe and Stu Miller (securities/corporate) and James Morand (tax) acted as Canadian counsel to Legacy. Jon Gregg of Sidley Austin Brown & Wood LLP acted as U.S. counsel. Blake, Cassels & Graydon LLP acted for the underwriters with a team comprised of Frank Arnone, Anoop Dogra and Prudence Watson (securities/corporate), Jeffrey Trossman and Chris Van Loan (tax) and Silvana D’Alimonte, Iris Tam and Pierre Crichton (real estate).