Chartwell Seniors Housing Real Estate Investment Trust

October 13, 2010 15:46 ET

Chartwell Seniors Housing REIT Announces $130 Million Equity Raise to Redeem Convertible Debentures

MISSISSAUGA, ONTARIO--(Marketwire - Oct. 13, 2010) -


Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) ("Chartwell") announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, under which the underwriters have agreed to buy on a bought deal basis by way of a short form prospectus, 13,775,000 trust units (the "Trust Units") at a price of $9.45 per Trust Unit for gross proceeds of $130,173,750 (the "Offering"). Chartwell has granted the underwriters an option, for a period of 30 days following the closing of the Offering, to purchase up to an additional 2,066,250 Trust Units to cover over-allotments, if any. The net proceeds from the Offering are intended to be utilized by Chartwell to redeem Chartwell's $124,925,000 6.0% convertible unsecured debentures, which mature on December 1, 2011 with a par call date of December 1, 2010 and for general trust purposes. The Offering is expected to close on or about October 29, 2010 and is subject to Chartwell receiving all necessary regulatory approvals. 

Chartwell will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, a preliminary short form prospectus relating to the issuance of the Units. 

Chartwell intends to make monthly cash distributions to Unitholders of record on each record date, on or about the 15th day of the month following the record date. Chartwell's current monthly cash distribution is $0.045 per Unit. The first cash distribution to which purchasers of the Units under this Offering will be entitled to participate will be for the month of October, with a record date of October 29, 2010 and a payment date of November 15, 2010.

Brent Binions, President and Chief Executive Officer of Chartwell commented that, "this equity offering and the intended redemption of the convertible debentures is consistent with our previously expressed intention to reduce our leverage over time. With the par call date occurring within weeks of the closing of this equity transaction, we will be able to replace $125 million of debt with equity with only slight AFFO dilution." 

This press release is not an offer to sell, or a solicitation of an offer to buy, any securities. The securities referred to in this press have not been and will not be registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933.

Chartwell is a real estate investment trust focused on generating sustainable, stable and growing cash distributions from owning and managing a complete range of seniors housing communities. It is one of the largest participants in the North American seniors housing business. 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 facilities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. 

Chartwell's Distribution Reinvestment Plan (DRIP) allows Unitholders to have their monthly cash distributions used to purchase units without incurring commission or brokerage fees, and receive bonus units equal to 3% of their monthly cash distributions. More information can be obtained at

This press release contains forward-looking information that reflect the current expectations of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "believe", "project", "should" or "continue" or the negative thereof or similar variations. 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 Chartwell's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements.

While we anticipate that subsequent events and developments may cause our views to change, we do not have an intention to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimated expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. 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. These factors are not intended to represent a complete list of the factors that could affect us. See "Risks and Uncertainties" in our MD&A and risk factors highlighted 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.

Contact Information

  • Chartwell Seniors Housing Real Estate Investment Trust
    Vlad Volodarski, CFO
    (905) 501-4709
    (905) 501-9107 (FAX)