Leisureworld Senior Care completes C$190 million initial public offering

On March 23, 2010, Leisureworld Senior Care Corporation (Leisureworld) completed its initial public offering of 19,020,000 common shares. The shares were sold to investors at C$10 per share, generating total gross proceeds of approximately C$190 million.

The offering was sold through a syndicate of underwriters led by TD Securities Inc., Macquarie Capital Markets Canada Ltd. and RBC Dominion Securities Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Brookfield Financial Corp., and Genuity Capital Markets. The underwriters have been granted an over-allotment option, exercisable in whole or in part for a period of 30 days, to purchase up to an additional 958,649 common shares of Leisureworld at the offering price.

The Company has used the net proceeds of the offering to indirectly acquire approximately 95% of the ownership interests in Leisureworld's operating assets, Leisureworld Senior Care LP and Leisureworld Senior Care GP Inc., from Macquarie Long Term Care LP (MLTCLP), to repay approximately C$62 million of debt and to pay offering-related expenses, including underwriting commissions, of approximately C$15 million. The net proceeds of the exercise of the over-allotment option, if exercised, will be used to acquire the remaining 5% ownership interest in Leisureworld's operating assets. If the over-allotment option is not exercised, MLTCLP will hold a retained interest in the company equal to up to 5% of the common shares.

Leisureworld is Ontario's third-largest licensed long-term care (LTC) provider, with 26 LTC homes, a retirement home and an independent living home in the province. Its subsidiaries include Preferred Health Care Services (a professional nursing and personal support services provider), Ontario Long Term Care (a purchasing services, dietary and social work services provider) and Tealwood Developments (a laundry services provider).

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