Chartwell Retirement Residences announces $200M senior debenture offering

pcNewsWire – Chartwell Retirement Residences (TSX: CSH.UN) has agreed to issue $200 million aggregate principal amount of series A senior unsecured debentures, unconditionally guaranteed by Chartwell Master Care LP.

The debentures are being offered on a reasonable best efforts agency basis by a syndicate of agents co-led by CIBC Capital Markets and BMO Capital Markets with CIBC Capital Markets acting as sole bookrunner.

The offering is being made by way of a private placement to “accredited investors” in the Province of Alberta and pursuant to the “minimum amount investment” exemption in each of the other provinces of Canada.

Proceedswil be used to fund a portion of the purchase price of the previously-announced acquisitions of three retirement residences in Ontario, for potential future acquisitions, to repay a portion of existing indebtedness under Chartwell’s new credit facilities and for general trust purposes.

News Release

CHARTWELL ANNOUNCES ISSUANCE OF $200 MILLION OF 3.786% SERIES A SENIOR UNSECURED DEBENTURES

NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

MISSISSAUGA, ON – June 6, 2017 – Chartwell Retirement Residences (“Chartwell”) (TSX: CSH.UN) announced today that it has agreed to issue $200 million aggregate principal amount of series A senior unsecured debentures (the “Debentures”). The Debentures will bear interest at a rate of 3.786% per annum and will mature on December 11, 2023. The Debentures will be unconditionally guaranteed by Chartwell Master Care LP. The Debentures are being offered on a reasonable best efforts agency basis by a syndicate of agents co-led by CIBC Capital Markets and BMO Capital Markets with CIBC Capital Markets acting as sole bookrunner. The offering is expected to close on or about June 9, 2017, subject to satisfaction of customary closing conditions. DBRS Limited has assigned a provisional rating of “BBB (low)” with a “Stable” trend to the Debentures. It is a condition to the closing of the offering that DBRS Limited assign a final rating to the Debentures of “BBB (low)” with a “Stable” trend.

Chartwell intends to use the net proceeds from this offering to fund a portion of the purchase price of the previously-announced acquisitions of three retirement residences in Ontario, for potential future acquisitions, to repay a portion of existing indebtedness under Chartwell’s new credit facilities and for general trust purposes.

The offering is being made by way of a private placement to “accredited investors” in the Province of Alberta and pursuant to the “minimum amount investment” exemption in each of the other provinces of Canada.

The Debentures have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Chartwell

Chartwell is an unincorporated, open-ended trust which indirectly owns and operates a complete range of seniors housing communities from independent supportive living through assisted living to long term care. It is the largest owner and operator of seniors residences in Canada. Chartwell’s aim is to capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of seniors housing communities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. More information can be obtained at www.chartwell.com.

SOURCE: Chartwell Retirement Residences