Lanesborough Real Estate Investment Trust V.LRT.UN

Unsecured to Secured debentures in 2011

[quicksilver545]

I went back in the SEDAR documents and noticed the following:

"At the Meeting, the Debentureholders will be asked to approve the following amendments to the Debentures:

• increasing the interest rate on the Debentures from 7.5% per annum to 9.5% per annum;

• extending the maturity date of the Debentures from December 31, 2011 to February 28,

  2015;

• eliminating the ability of Debentureholders to convert the Debentures into trust units of

  LREIT (“Units”);

• amending the redemption features of the Debentures;

• eliminating the ability of LREIT to repay the principal amount of the Debentures through

  the issuance of Units on redemption or maturity of the Debentures;

• eliminating the ability of LREIT to satisfy its interest payment obligations through the

  issuance of freely tradeable Units; and

• improving the security granted by LREIT for the repayment of the Debentures so that the Debentures shall be secured by a charge to and in favor of the Indenture Trustee on all of LREIT’s property and assets, subject to senior debt and permitted encumbrances.

So the debenture holders agreed on an amendment to change from unsecured to secured back in 2011. Very interesting...

[alkhor]

Strange the maturity date of the debentures was extended to 2014 and then again to 2018 but I have found nothing which extended the maturity past June 30th, 2018. If the debentures are no longer subordinate to the Shelter loan, why are they not making the same proposal to both and get rid of all loans except mortgages? This is probaby the hold up as some major debenture holder is insisting on it

[quicksilver545]

A few people have said that we are not subordinate to the Shelter loan, but I don't see that anywhere. How are we making this claim?

[BobTheKnob2]

The debentures as you have stated were extended" 1.) Original offering in December 2006 matured December 2011; 2.) Extended term by introducing "Secured" status and removing convertible option amongst other changes to the trust indenture in October 2011 with term maturing February 2015; 3.) Extended term in June 2014 with term maturing June 2018; 4.) Extended term in June 2016

[BobTheKnob2]

To extend this information I provided above can be read in conjunction with the information found below. Each point corresponds with the other: 1.) First term of the 7.5% convertible redeemable unsecured subordinated debentures began at issuance in December 2006 and matured on December 31, 2011; 2.) the 9.5% redeemable subordinated secured debentures began term on December 31, 2011 and

[BobTheKnob2]

Note my error. I wish I could go back and edit it. - under item 2, the maturity date should read "scheduled to mature on February 28, 2015; - under item 3, the maturity date should read "scheduled to mature on June 30, 2018"