Leisureworld Senior Care Corporation
TSX : LW

Leisureworld Senior Care Corporation

April 27, 2011 17:55 ET

Leisureworld Announces Completion of Acquisition of Two Luxury Retirement Residences, Debt Financing and Issuance of Common Shares

MARKHAM, ONTARIO--(Marketwire - April 27, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Leisureworld Senior Care Corporation (the "Company") (TSX:LW) today announced that it has completed its previously announced acquisition of two luxury retirement residences for a net purchase price paid to the vendors of $89.0 million after working capital adjustments and a holdback of $5.5 million to be held in escrow as an income guarantee to complement cash flow from the properties during the lease-up period (the "Acquisition"). The two properties, which together are comprised of 294 suites, complement the Company's existing retirement facilities and long-term care homes and further grow its existing expertise in seniors housing.

As brand new luxury retirement living properties featuring top quality amenities which are competitively positioned in attractive markets, the retirement residences will be marketed under the Company's 'The Royale' brand.

To finance a portion of the purchase price, the Company entered into a two-year bridge debt facility with a Canadian chartered bank in the amount of $55 million. After putting in place interest rate swap arrangements, the all-in cost of borrowing under the facility will be approximately 4% per annum.

The balance of the purchase price was funded from the net proceeds of the Company's recently completed public offering of subscription receipts, which raised gross proceeds of approximately $46 million. On closing of the Acquisition, one common share was automatically issued in exchange for each outstanding subscription receipt, resulting in the issuance of 4,381,500 common shares.

The securities offered pursuant to the subscription receipt offering 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 absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

About Leisureworld Senior Care Corporation

Leisureworld is the third largest licensed long-term care provider in Ontario. The Company owns and operates 26 LTC homes, representing approximately 4,314 beds across Ontario, Canada. The Company also owns and operates three retirement homes with 323 suites and one independent living home with 53 suites. The Company's subsidiaries include: The Royale, a provider of luxury retirement living, Preferred Health Care Services, an accredited provider of professional nursing and personal support services; and Ontario Long Term Care, a provider of purchasing services, dietary services, social work, and other regulated health professional services.

Forward-Looking Statements

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, statements related to the all-in cost of borrowing under the debt financing. 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 current expectations of the Company as at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

Contact Information

  • Leisureworld Senior Care Corporation
    Philip Koven
    Investor Relations
    (416) 447-4740 ext 235