Leisureworld Senior Care Corporation

TSX : LW


Leisureworld Senior Care Corporation

January 13, 2014 17:17 ET

Leisureworld Proposed Debentures Assigned Provisional Rating by DBRS

MARKHAM, ONTARIO--(Marketwired - Jan. 13, 2014) -

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Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or the "Company") today announced that DBRS has assigned a provisional rating of A (low), with a Stable trend, to a proposed issuance of approximately $317 million of Series B Senior Secured Debentures (the "Series B Debentures") by Leisureworld Senior Care LP ("LSCLP"), a wholly-owned subsidiary of the Company.

The proceeds from the issuance of Series B Debentures, if completed, would be used to redeem all of the outstanding 4.814% Series A Senior Secured Debentures of LSCLP due November 24, 2015 and to pay all associated fees and expenses.

The proposed Series B Debentures would be issued by LSCLP under a supplement to its existing master trust indenture, have a 7-year term, bear interest at market rates prevailing at the time of issuance, and include covenants to maintain a principal reserve fund to be used for bond repayment. The principal reserve fund would be funded by LSCLP at least semi-annually to a predetermined minimum balance with the intention that approximately $45 million would be available in the account by the maturity date of the Series B Debentures.

Leisureworld expects that the necessary arrangements to issue and offer the Series B debentures will be made in the upcoming weeks.

The full DBRS press release announcing the provisional rating is available at www.dbrs.com.

About Leisureworld

Leisureworld Senior Care Corporation is one of Canada's largest operators of seniors' housing and is the largest licensed LTC provider in Ontario. Leisureworld has 7,500 employees and owns and operates 35 LTC homes across Ontario with 5,733 beds. Leisureworld also owns and operates 10 retirement residences representing 1,065 suites, in Ontario and British Columbia. Under its management services division, Leisureworld provides management and consulting services to LTC homes and retirement residences in Ontario. Leisureworld subsidiaries include, Preferred Health Care Services, an accredited provider of professional nursing and personal support services. For more information, please visit Leisureworld's website at www.leisureworld.ca.

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 Company's financial results or strategic plans. In particular, the Company's intention to issue the Series B Debentures, the expected terms of the Series B Debentures and the use of proceeds from the issuance of the Series B Debentures constitute forward-looking statements. Forward-looking statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The issuance of the Series B Debentures is not certain and will be subject to market conditions and settlement of satisfactory terms for the Series B Debentures. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. 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. The assumptions, risks and uncertainties described above are not exhaustive and other 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 Leisureworld as at the date of this news release and speak only as at the date of this news release. Leisureworld 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
    Lois Cormack
    Chief Executive Officer
    (905) 415-7612

    Leisureworld Senior Care Corporation
    Tim McSorley
    Chief Financial Officer (Interim)
    (905) 477-4006 ext. 2089
    www.leisureworld.ca