April 2, 2018
MARKHAM, ONTARIO–Sienna Senior Living Inc. (“Sienna” or the “Company”) is pleased to announce that it has completed the previously announced acquisition (the “Acquisition”) of ten high-quality private-pay independent supportive living and assisted living retirement residences in Ontario (the “Acquired Properties”), for an aggregate purchase price of approximately $382 million, subject to customary closing adjustments. The Acquired Properties consist of 1,245 private-pay suites located in the Greater Toronto and Greater Ottawa areas.
The Acquisition and related transaction costs were financed through a combination of: (i) the assumption and up financing of approximately $88.2 million in property-level debt at a weighted average interest rate of 3.87% and a weighted average term to maturity of 6.2 years; (ii) a $115 million acquisition term loan facility that the Company expects to refinance post-closing; (iii) net proceeds of the Company’s recent bought deal offering which raised gross proceeds of approximately $184 million; and (iv) draws on the Company’s existing credit facilities.
“This strategic acquisition continues to enhance the quality and size of Sienna’s retirement portfolio, in keeping with the Company’s goal of achieving a balanced portfolio of 50% private pay, and is expected to drive long-term value creation for shareholders. We look forward to welcoming the new team members and residents and continuing to strengthen Sienna’s operating platform as the Company expands its presence in key markets,” said Lois Cormack, president and CEO of Sienna.
Sienna Senior Living Inc. (TSX:SIA) is a leading seniors’ living provider with 85 seniors’ living residences in key markets in Canada.