Temple Hotels TMPHF

Temple Announces Proposal to Amend the Terms of TPH.DB.E

[robbie80]

The proposed amendments (the "Debenture Amendments") to the Debentures (as amended by the Debenture Amendments, the "Amended Debentures") consist of:

1. DECREASING the conversion price from $40.08 to $15.00 per share of Temple;
2. EXTENDING the maturity date from September 30, 2017 to September 30, 2020; and
3. PERMITTING Temple to redeem the Amended Debentures, in whole or in part, at any time up to September 30, 2020, at a price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding the date of the redemption.

[KnowledgeSeekr8]

This is very good news. Maybe Morguard will be able to bring us back from nearly dead after all!

[robbie80]

All companies would talk to major debt holders first to set terms for approval. It is a done deal considering current TPH.DB.E is trading at face value. HLC current price is around $5.50 and extended conversion price is $12. TPH current price is $3.7 and extended conversion price is$15. It seems to me that Morguard believes its value and doesn't want any dilution.

[HermannHaller]

I'm not sure its a done deal. Bid is now 79. The conversion option at $15 is worthless when the stock is under $4. I expect they will have to sweeten the offer (maybe redeem a meaningful percentage) or come up with plan B.

[jay6812]

Sorry but I see the Bid price as at 3:37pm of Aug 21st was $98.1

[Packum7]

The stock is still falling . I wonder if they have enough votes. They probably need to change the conversion to a lower number. Is morguard allowed to vote their debentures?

[KnowledgeSeekr8]

Yes this has been dropping like a stone recently. down to sub $.60 pre-split. I don't think it ever hit that. I was worried once they announced the split as this seems to always happen on these reverse splits. The class E debentures seem to be holding price close to par which is a good sign as the bid is around $96 but the class F has a bid of $76 which is not good. The next 6-9 months will be