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Press release from CNW Group

Regal Lifestyle Communities Inc. completes $138.8 million initial public offering

Tuesday, October 16, 2012

Regal Lifestyle Communities Inc. completes $138.8 million initial public offering08:14 EDT Tuesday, October 16, 2012/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TORONTO, Oct. 16, 2012 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") (TSX: RLC) announced today that it has completed its initial public offering of 13,879,700 common shares at a price of $10.00 per common share. The offering raised gross proceeds of approximately $138.8 million and was underwritten by a syndicate of underwriters co-led by CIBC and BMO Capital Markets, and including TD Securities Inc., RBC Dominion Securities Inc., Scotia Capital Inc., National Bank Financial Inc., Canaccord Genuity Corp., Desjardins Securities Inc. and Raymond James Ltd.The Company has granted the underwriters an over-allotment option, exercisable for a period of 30 days following the closing, to purchase up to an additional 2,081,955 common shares at a price of $10.00 per common share which, if exercised in full, would increase the total gross proceeds of the offering to approximately $159.6 million.The common shares will commence trading today on the Toronto Stock Exchange under the symbol "RLC".Simon Nyilassy, President and Chief Executive Officer of Regal said "We are excited to launch Regal with ten high-quality, recently built retirement communities." He added "Our internally managed company will be focused on delivering an exceptional level of care and comfort to our residents and we look forward to adding to our portfolio of current generation homes as we grow."Regal used the proceeds of the offering to fund a portion of the acquisition of ten "current generation" retirement communities. The aggregate purchase price for the ten retirement communities was approximately $340.1 million, which was satisfied through the assumption of mortgage debt, and the issuance of new mortgage and term debt of approximately $207.6 million, the issuance of 900,000 common shares and the balance in cash from the net proceeds of the offering.The Company intends to make monthly cash distributions to its shareholders at a rate of $0.058 per common share, which are initially expected to provide an annual yield of 7.00%.  The first cash distribution, which will be for the period from the date of closing of the offering to November 30, 2012, is expected to be paid on or about December 14, 2012 to shareholders of record on November 30, 2012, in an amount estimated to be $0.086 per common share.  Copies of the final prospectus are available under the Company's profile on SEDAR at www.sedar.com.The common shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the common shares in the United States or to, or for the account or benefit of, U.S. Persons.About Regal Lifestyle Communities Inc.Regal Lifestyle Communities Inc. is a corporation incorporated under the laws of the Province of Ontario. Concurrently with the completion of its initial public offering and related transactions, the Company acquired a portfolio consisting of income-producing retirement communities offering primarily independent serviced living and assisted living programs. The portfolio acquired is comprised of ten "current generation" retirement communities with an average age of approximately five years, consisting of over 1,400 suites, primarily located in the Province of Ontario and including a property located in each of the Provinces of Saskatchewan and Newfoundland and Labrador.Regal's goals are to deliver stable dividends to its shareholders while expanding its portfolio of current generation retirement communities over time through accretive acquisitions and expansions of owned communitiesForward-Looking StatementsThis press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the factors discussed under "Risk Factors" in the final prospectus of the Company dated October 5, 2012. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.SOURCE: Regal Lifestyle Communities Inc.For further information: Simon Nyilassy, President and Chief Executive Officer Regal Lifestyle Communities Inc. (416) 777-9677 x 202 or Harrold Atterton, Chief Financial Officer Regal Lifestyle Communities Inc. (416) 777-9677 x 203