MARKHAM, Ontario, March 28, 2018 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) is pleased to announce that it has completed the previously announced acquisition (the “Acquisition”) of ten high-quality private-pay independent supportive living and assisted living retirement residences in Ontario (the “Acquired Properties”), for an aggregate purchase price of approximately $382 million, subject to customary closing adjustments. The Acquired Properties consist of 1,245 private-pay suites located in the Greater Toronto and Greater Ottawa areas.
The Acquisition and related transaction costs were financed through a combination of: (i) the assumption and up financing of approximately $88.2 million in property-level debt at a weighted average interest rate of 3.87% and a weighted average term to maturity of 6.2 years; (ii) a $115 million acquisition term loan facility that the Company expects to refinance post-closing; (iii) net proceeds of the Company’s recent bought deal offering which raised gross proceeds of approximately $184 million; and (iv) draws on the Company’s existing credit facilities.
“This strategic acquisition continues to enhance the quality and size of Sienna's retirement portfolio, in keeping with the Company’s goal of achieving a balanced portfolio of 50% private pay, and is expected to drive long-term value creation for shareholders. We look forward to welcoming the new team members and residents and continuing to strengthen Sienna’s operating platform as the Company expands its presence in key markets,” said Lois Cormack, President and Chief Executive Officer of Sienna.
ABOUT SIENNA SENIOR LIVING INC
Sienna Senior Living Inc. (TSX:SIA) is a leading seniors' living provider with 85 seniors' living residences in key markets in Canada. Sienna offers a full range of seniors' living options, including independent and assisted living, long-term and residential care, and specialized programs and services. Sienna also provides expert management services. Sienna is committed to national growth, while driving long-term value for shareholders. The Company's approximately 12,000 employees are passionate about helping residents live fully every day, and were the driving force behind Sienna being named one of Canada's Most Admired Corporate Cultures in 2017. For more information, please visit www.siennaliving.ca.
Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words and include, among other things, the Company’s plans to refinance the acquisition term loan facility post-closing, the Company’s goal of achieving a balanced portfolio of 50% private pay, the expectation that the Acquisition will drive long-term value creation for the Company’s shareholders and the Company’s efforts to continue to strengthen Sienna’s operating platform and expand its presence in key markets. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. Unanticipated events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect Sienna's current expectations as at the date of this news release and speak only as at the date of this news release. Sienna does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
President & Chief Executive Officer
Chief Financial Officer & Chief Investment Officer
Source: Sienna Senior Living