/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 2, 2013 /CNW/ - Regal Lifestyle Communities Inc. ("Regal"
or the "Company") (TSX: RLC) announced today that it has completed its
previously announced public offering with a syndicate of underwriters,
co-led by CIBC and TD Securities, on a bought deal basis (the
"Debenture Offering"), of $25 million aggregate principal amount of
6.00% convertible unsecured subordinated debentures due December 31,
2018 (the "Debentures"). The Debentures are convertible at the option
of the holder, into common shares of the Company at a price of $9.75
per common share.
Concurrently with the closing of the Debenture Offering, the Company
completed the private placement of approximately 1.76 million common
shares to a corporation controlled by Moray Tawse, a director and
shareholder of Regal, at a price of $7.10 per common share for total
proceeds of approximately $12.5 million (the "Concurrent Private
Placement"). Mr. Tawse now holds, directly or indirectly, approximately
12% of the issued and outstanding common shares of the Company.
The aggregate net proceeds from the Debenture Offering and the
Concurrent Private Placement will be used by the Company to partially
fund the acquisition of four retirement homes located in Southern
Ontario (collectively, the "Portfolio") from Community Lifecare Inc.
and certain of its affiliates and for general corporate purposes. The
Company expects to complete the acquisition of the Portfolio on or
about October 9, 2013. If the acquisition of the Portfolio is not
completed, the aggregate net proceeds from the Debenture Offering and
Concurrent Private Placement will be used by the Company to fund future
acquisitions and for general corporate purposes.
Copies of the Company's short form prospectus are available on SEDAR at www.sedar.com
The Debentures and the common shares of the Company 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), except pursuant to an
exemption from the registration requirements of the 1933 Act. This
press release does not constitute an offer to sell or a solicitation of
an offer to buy any of the Debentures and/or common shares in the United States or to, or for the account or benefit of, U.S.
About Regal Lifestyle Communities Inc.
Regal Lifestyle Communities Inc. is a corporation incorporated under the
laws of the Province of Ontario which currently owns a portfolio of ten
income-producing retirement communities offering a continuum of care,
from independent serviced living to a full range of assisted living
programs. The ten "current generation" retirement communities comprise
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.
Forward Looking Information
Certain information in this press release may constitute forward-looking
statements that involve a number of risks and uncertainties, including
statements with respect to the Company and its operations, strategy,
financial performance and financial condition, as well as with respect
to the closing of the acquisition of the Portfolio. Forward-looking
statements use the words "believe", "expect", "anticipate", "may",
"should", "intend", "estimate" and other similar terms, which do not
relate to historical matters. Such forward-looking statements involve
known and unknown risks and uncertainties and other factors that may
cause the actual results to differ materially from those indicated.
Such factors include, but are not limited to, general economic
conditions and the failure to receive any required approvals or
consents in connection with the acquisition of the Portfolio or the
failure to satisfy or waive any other condition to the acquisition of
the Portfolio. Also see the risk factors identified in the public
filings of the Company available on www.sedar.com. The Company believes
that the expectations reflected in its forward-looking statements are
based on reasonable assumptions; however, the Company can give no
assurance that actual results will be consistent with these
forward-looking statements. Except as required by applicable law, the
Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. Readers should be cautioned not to place
undue reliance on the forward-looking statements.
SOURCE: Regal Lifestyle Communities Inc.
For further information:
President and Chief Executive Officer
Regal Lifestyle Communities Inc.
Chief Financial Officer
Regal Lifestyle Communities Inc.