Extendicare completes public offering of 5.00% convertible debentures

April 17, 2018

Torys represented the syndicate of underwriters led by RBC Capital Markets with a team that included Simon Knowling, Michael Zackheim and Riley Harmon (corporate/securities), Andrew Wong (tax), Richard Missaghie (real estate) and Michael Fortier (environmental).

On March 26, 2018, Extendicare Inc. (“Extendicare”) announced that it reached an agreement with a syndicate of underwriters led by RBC Capital Markets and which includes BMO Capital Markets, CIBC World Markets Inc., TD Securities, National Bank Financial Inc., Scotiabank, and Echelon Wealth Partners Inc. to issue to the public, subject to regulatory approval, on a bought deal basis, C$110 million aggregate principal amount of 5.00% convertible unsecured subordinated debentures due April 30, 2025 with a conversion price of C$12.25 per common share.

Extendicare announced the closing of the offering on April 17, 2018.

As part of the offering, Extendicare also granted the underwriters an over-allotment option, exercisable at any time up to 30 days after the closing date, to acquire up to an additional C$16.5 million aggregate principal amount of debentures. Extendicare announced the full exercise of the option on April 25, 2018, bringing the total aggregate principal amount of the debentures issued by the company to C$126.5 million.

The net proceeds from the offering (after deducting the underwriters’ fee and expenses) will be used to partially fund the redemption of Extendicare’s outstanding 6.00% convertible unsecured subordinated debentures due September 30, 2019.

Extendicare is a leading provider of care and services for seniors throughout Canada with a network of 116 operated senior care and living centres (66 owned/50 managed), as well as home health care operations.

Further information can be found on Globe Newswire’s website.

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