3128012 Nova Scotia Limited Announces Cash Tender Offer for 3.75% Convertible Senior Notes Issued By Fairmont Hotels & Resorts
01 April 2006 - 12:39AM
PR Newswire (US)
NEW YORK, March 31 /PRNewswire/ -- 3128012 Nova Scotia Limited (the
"AcquisitionCo"), a Nova Scotia corporation owned by affiliates of
Kingdom Hotels International and Colony Capital, LLC, announced
today that it has commenced a cash tender offer for any and all of
the outstanding 3.75% Convertible Senior Notes due 2023 (CUSIP Nos.
305204 AA 7 and 305204 AB 5) (the "Convertible Notes") issued by
Fairmont Hotels & Resorts Inc. ("Fairmont"). The tender offer
(the "Offer") is being made upon the terms and conditions in the
Offer to Purchase and related Letter of Transmittal, dated March
31, 2006. The Offer will expire at 5:00 pm, New York City time, on
April 28, 2006, unless extended or terminated (the "expiration
time"). Tenders of the Convertible Notes may be withdrawn at any
time prior to the expiration time. Under the terms of the Offer,
AcquisitionCo is offering to purchase each $1,000 principal amount
of Convertible Notes at a purchase price of $1,211.43, which is the
sum of (a) $1,192.68, or the amount that would have been received
had the Convertible Notes been converted into common shares of
Fairmont (the "Fairmont Common Shares") prior to the effective time
of the Arrangement (as defined herein) and then converted into
$45.00 in cash for each Fairmont Common Share in the Arrangement,
plus (b) accrued and unpaid interest to June 1, 2006. As discussed
more fully in the offer materials, the purchase price will be
adjusted if the Offer is extended to (or beyond) 5:00 pm, New York
City time, on May 15, 2006, the record date for the next interest
payment to be made with respect to the Convertible Notes, which is
scheduled for June 1, 2006. The Offer is being made in connection
with the Acquisition Agreement, dated January 29, 2006 (the
"Acquisition Agreement"), between Fairmont and AcquisitionCo. A
meeting of Fairmont shareholders is scheduled to be held on April
18, 2006 for the consideration and approval of the Acquisition
Agreement, pursuant to which, among other things, AcquisitionCo
will acquire all of the outstanding Fairmont Common Shares for
$45.00 in cash for each Fairmont Common Share (the "Arrangement").
The Arrangement is not conditioned upon successful completion of
the Offer. The Offer is not conditioned on any minimum aggregate
principal amount of the Convertible Notes being tendered. The Offer
is, however, subject to the conditions discussed under "THE
OFFER-8. Conditions of the Offer" in the Offer to Purchase,
including the receipt by AcquisitionCo of a copy of a notice from
each of the parties to the Acquisition Agreement to the other party
thereto that all conditions to such party's obligation to implement
the Arrangement have been satisfied (including the receipt of the
Final Order from the Ontario Superior Court of Justice as required
under the Canada Business Corporations Act) or, to the extent
legally permissible, waived and that such party is prepared,
subject to terms of the Acquisition Agreement and the fulfillment
by the other party of its obligations under the Acquisition
Agreement, to implement the Arrangement within two business days.
As discussed in the offer materials, none of AcquisitionCo or
Fairmont (or their respective management or the board of
directors), the Information Agent, the Depositary or their
respective affiliates makes any recommendation to any holder of any
of the Convertible Notes as to whether to tender any such
Convertible Notes. This press release is merely a notification of
the Offer and is neither an offer to purchase nor a solicitation of
an offer to sell the Convertible Notes. The Offer is being made
only pursuant to the Offer to Purchase and related Letter of
Transmittal dated March 31, 2006. Holders of Convertible Notes
should read the Offer to Purchase, related Letter of Transmittal
and other tender offer documents distributed to them, and any
subsequently distributed amendments thereto, because they contain
important information. The Offer to Purchase, related Letter of
Transmittal and other tender offer documents may be obtained free
of charge by contacting Global Bondholder Services Corporation, the
Information Agent, by telephone at (866) 470-3700 (toll free),
(212) 430-3774 (call collect) or in writing to 65 Broadway - Suite
704, New York, NY 10006, Attention: Kam Ng. Questions regarding the
Offer should be directed to Global Bondholder Services Corporation
as described above, or to The Bank of New York, the Depositary, by
telephone at (212) 815-3738, or in writing to the Corporate Trust
Operations, Reorganization Unit, 101 Barclay Street - 7 East, New
York, NY 10286, Attention: Evangeline R. Gonzales. DATASOURCE: Nova
Scotia Limited CONTACT: Kam Ng, +1-866-470-3700, for Nova Scotia
Limited
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