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The Fairmont Empress in Victoria, British Columbia, and Fairmont Le Château Frontenac in Quebec City, Quebec |
The purchase price of the hotels was $120 million for The Fairmont Empress and $185 million for Fairmont Le Château Frontenac, plus approximately $9 million in closing costs. The hotels are held in a wholly owned subsidiary of Legacy which issued 14.7 million exchangeable shares to a wholly owned subsidiary of CPH&R at a price of $8.60 per share for $126.4 million. These shares are exchangeable into Legacy units on a one for one basis and are intended to track, after tax, existing Legacy units. The balance of the purchase has been satisfied by a note issued to the vendor. This note will be repaid from the net proceeds of secured, non-recourse loans to the company from third party lenders. These loans are expected to be finalized in the next few weeks. The exchangeable shares increase CPH&R�s current ownership of Legacy units to approximately 46% on a fully diluted basis. Over time CPH&R intends to reduce its consolidated interest to its original investment of 34% through a secondary offering. Legacy�s current portfolio now consists of 21
luxury and first class hotels from coast to coast in Canada with 9,579
rooms. Fairmont Hotels & Resorts manages the ten luxury hotels
and Delta Hotels manages the 11 first class properties. Legacy�s
Units trade on The Toronto Stock Exchange under the trading symbol �LGY.UN�.
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M. Jerry Patava Executive Vice President and Chief Financial Officer [email protected] www.legacyhotels.ca |
Also See | Fairmont Hotels & Resorts Joins Avendra with Marriott, Hyatt, Bass, and ClubCorp / Jan 2001 |