TORONTO, ONTARIO--(Marketwired - April 16, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
HealthLease Properties Real Estate Investment Trust (TSX:HLP.UN) ("HealthLease" or "the REIT") announced today that as a result of strong investor demand for its previously announced CDN$50.0 million equity offering, the size of the offering has been increased to CDN$70.0 million. The revised offering will be underwritten on a bought deal basis with a syndicate of underwriters led by BMO Capital Markets and National Bank Financial Inc. (collectively, the "Underwriters"). HealthLease has also granted the Underwriters an over-allotment option to purchase up to an additional 500,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. The Offering is expected to close on or about May 5, 2014 and is subject to customary conditions, including regulatory approval and the approval of the Toronto Stock Exchange.
"The transaction has been upsized from CDN$50.0 million to CDN$70.0 million due to strong investor demand," stated Zeke Turner, Chairman and CEO of the REIT. "The additional proceeds will enable HealthLease to continue to execute on its strategic growth plan of acquiring high quality, current generation assets on an accretive basis for unitholders."
The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada.
The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), 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 Units in the United States or to, or for the account or benefit of, U.S. persons.
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX:HLP.UN) owns one of the youngest and highest quality portfolios of seniors housing and care facilities with 54 properties - 14 in two Canadian provinces and 40 in eight U.S. states, for a total of 5,383 beds. The facilities are leased to experienced tenant operators who have significant operational experience. The leases are structured as long-term and triple-net: features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio meets the growing demands of modern seniors by emphasizing features such as hotel-like design, private rooms and baths and hospitality-inspired amenities.
This press release contains forward-looking statements with respect to HealthLease and its operations, strategy, financial performance and financial condition, as well as with respect to the Acquisitions. These statements generally can be identified by the use of forward-looking words such as "forecast", "may", "will", "would", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of HealthLease and the senior care portfolios discussed herein (including HealthLease's existing portfolio and those to be acquired pursuant to the Acquisitions) (the "Senior Care Portfolio") could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of HealthLease. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the failure to receive any required approvals or consents in connection with one or more of the Acquisition or the failure to satisfy or waive any other condition to one or more of the Acquisitions, the failure of HealthLease to realize expected benefits from the acquisition of one or both of the Senior Care Portfolios, the failure of HealthLease to satisfy the conditions of the Offering or otherwise close the Offering, the performance of the Senior Care Portfolios generally, and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to HealthLease and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of HealthLease. The assumptions made in making forward-looking statements in this press release also include the assumption that HealthLease will be in a position to satisfy the conditions in respect of the Acquisitions, the Offering and the replacement of its current operating line and complete those transactions. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, HealthLease specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Additional information about these assumptions and risks and uncertainties is contained in HealthLease's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at HealthLease's website at www.hlpreit.com.