Whiterock Real Estate Investment Trust T.WRK.DB.K

RE: Convertible debentures

[alder]

Hi Usul : I think your information is correct. I'm not sure if I'm misreading your comment : "management can redeem @ 150% conversion price after 2007 or 125% of conversion price after 2008/09" or not. My reading of of a redemption means that the company can redeem the debentures at a price equal to the principal amount plus accrued interest provided that the units are trading at at least 150 % of the conversion price (in the after 2007 case). I have always assummed, perhaps incorrectly, that since the company has to give at least 30 days notice before redemption that you would have time to convert the debentures to shares and sell the shares before the redemption takes place. ie say WRK.UN were trading at $3.50 and the company announces a redemption of the debentures. If you wait for the redemption price you will only get a $1000 plus some interest. Obviously you would like to be able to convert to shares and sell to receive considerablely more money. Will you be able to do this ? Perhaps someone would be kind enough to confirm or contradict the above paragraph. Regards to all Alder Hi all, Having some problems with SEDAR at the moment. Can someone provide me with some details regarding the debentures? If I remember correctly, they are/have: -8% coupon -mature in June 2010 -conversion of $2.55 / unit -can convert after 2007 @ holder's option -management can redeem @ 150% conversion price after 2007 or 125% of conversion price after 2008/09 On that last point, does this mean that management can "make" the holder exercise the conversion @ $2.55 or else be redeemed @ 1.5 x 2.55 after June 2007? -Usul