Chartwell Announces Closing of $345 Million Trust Unit Offering
27 June 2024 - 10:38PM
Chartwell Retirement Residences (TSX:CSH.UN)
(“
Chartwell”) announced the closing of its
previously announced public offering (the
“
Offering”) of 28,290,000 of trust units
(“
Trust Units”), inclusive of 3,690,000 Trust
Units issued pursuant to the exercise in full of the over-allotment
option, at a price of $12.20 per Trust Unit for total gross
proceeds of approximately $345 million. The Offering was completed
on a bought deal basis through a syndicate of investment dealers
led by TD Securities Inc., Scotiabank and RBC Capital Markets.
The Trust Units were offered in each of the
provinces of Canada pursuant to a prospectus supplement dated June
24, 2024 (the “Prospectus Supplement”) filed under
Chartwell’s short form base shelf prospectus dated April 30, 2024.
The terms of the Offering are fully described in the Prospectus
Supplement.
Chartwell intends to use the net proceeds from
the Offering to partially finance the cash purchase price of its
acquisitions of: (i) a 100% ownership interest in a portfolio of
five high quality, modern retirement residences with 1,428 suites,
located in the Greater Montreal area, Gatineau, and Sherbrooke; and
(ii) a 50% ownership interest in a portfolio of five high quality,
modern retirement residences with 1,805 suites located in the
Quebec City area and Shawinigan, as described in greater detail
under the heading “Use of Proceeds” in the Prospectus Supplement,
which is available on SEDAR+ at www.sedarplus.com.
The Trust Units have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the “1933 Act”), or any state securities
laws, and accordingly may not be offered, sold or delivered,
directly or indirectly, within the United States of America, (the
“United States”), its possessions and other areas
subject to its jurisdiction, except pursuant to an exemption from
the registration requirements of the 1933 Act. This press release
does not constitute an offer to sell or a solicitation of an offer
to buy any Trust Units in the United States.
ABOUT CHARTWELL
Chartwell is in the business of serving and
caring for Canada's seniors, committed to its vision of Making
People's Lives BETTER and to providing a happier, healthier, and
more fulfilling life experience for its residents. Chartwell is an
unincorporated, open-ended real estate trust which indirectly owns
and operates a complete range of seniors housing communities, from
independent living through to assisted living and long term care.
Chartwell is one of the largest operators in Canada, serving over
25,000 residents in four provinces across the country. For more
information visit www.chartwell.com.
FORWARD LOOKING INFORMATION
This press release contains forward-looking
information that reflects the current expectations, estimates and
projections of management about the future results, performance,
achievements, prospects or opportunities for Chartwell and the
seniors housing industry. Forward-looking information can be
generally identified by the use of words such as “anticipate”,
“continue”, “estimate”, “expect”, “expected”, “intend”, “may”,
“will”, “project”, “plan”, “should”, “believe” and similar
expressions. Forward-looking statements in this press release
include statements relating to the anticipated use of the net
proceeds of the Offering, including related acquisitions.
Forward-looking statements are based upon a number of assumptions
and are subject to a number of known and unknown risks and
uncertainties, many of which are beyond our control, and that could
cause actual results to differ materially from those that are
disclosed in or implied by such forward-looking statements. There
can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those expected or estimated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. See the “Risks and Uncertainties”
section in Chartwell's management’s discussion analysis of results
of operations and financial condition for the year ended December
31, 2023 and in our management’s discussion and analysis of results
of operations and financial condition for the three months ended
March 31, 2024, and in materials filed with the securities
regulatory authorities in Canada from time to time, including but
not limited to our most recent Annual Information Form and in the
prospectus supplement filed in connection with the Offering. Except
as required by law, Chartwell does not intend to update or revise
any forward-looking statements, whether as a result of new
information, future events or for any other reason.
For further information, please contact:
Jeffrey Brown Chief Financial
Officer Tel: (905) 501-6777investorrelations@chartwell.com |
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