- Chartwell Retirement Residences (CSH.UN) will issue 13,470,000 trust units at $13.00 per unit for gross proceeds of approximately $175 million
- BMO Capital Markets and RBC Capital Markets will act as joint bookrunners
- Chartwell has granted the underwriters an over-allotment option to purchase up to an additional 15 per cent of the units
- Net proceeds will be used to repay indebtedness, fund development and capital expenditures
- The offering is expected to close on or about August 25
- Chartwell is a real estate trust that owns and operates a complete range of seniors housing communities
- Chartwell Retirement Residences (CSH.UN) opened trading at C$13.40 per share
Chartwell Retirement Residences (CSH.UN) has entered into an agreement to issue 13,470,000 trust units at $13.00 per unit on a bought deal basis.
Gross proceeds are expected to total approximately $175 million.
BMO Capital Markets and RBC Capital Markets will act as joint bookrunners for this offering.
Chartwell has also granted the syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and CIBC World Markets an over-allotment option to purchase up to an additional 15 per cent of the units exercisable at any time, in whole or in part, up to 30 days after the closing of the offering.
Net proceeds will be used to repay indebtedness, fund development and capital expenditures.
“From the beginning of the COVID-19 pandemic we have been focused on the health and safety of our residents, their families and our staff and we continue to be vigilant in our infection prevention and control protocols today. With the high vaccination rates of our residents and staff, as well as in the society overall, we are seeing easing of the pandemic related restrictions. As a result our web site traffic, initial contacts, personalized visits and move-ins have been gradually increasing, pointing to the beginning of occupancy recovery in the coming months,” said Vlad Volodarski, Chief Executive Officer.
“We believe it is prudent at this time to raise additional equity capital to pay down debt and provide flexibility to invest in value creating initiatives within our property portfolio, development of new residences, and potentially, future acquisitions.”
The offering is expected to close on or about August 25, 2021, and is subject to customary conditions, including the approval of the Toronto Stock Exchange.
Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long-term care. It is the largest operator in the Canadian seniors living sector with over 200 quality retirement communities in four provinces.
Chartwell Retirement Residences (CSH.UN) opened trading at C$13.40 per share.