CML HealthCare Closes $50.56 Million Bought Deal Financing


    Toronto Stock Exchange Symbol: CLC.UN

    MISSISSAUGA, ON, March 26 /CNW/ - CML HealthCare Income Fund (TSX:
CLC.UN) (the "Fund") today announced the completion of its previously
announced public offering of 3.2 million trust units of the Fund ("Fund
Units") at a price of $15.80 per Fund Unit resulting in gross proceeds to the
Fund of $50.56 million (the "Offering"). The Fund Units were purchased and
re-sold to the public by way of a short form prospectus on a bought deal basis
by a syndicate of underwriters led by TD Securities Inc. and including
National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc.,
Raymond James Ltd., RBC Dominion Securities Inc., Scotia Capital Inc., and
Blackmont Capital Inc.
    The Fund will use net proceeds of the Offering to reduce borrowings under
its credit facility that was used to fund: i) its recently completed
acquisition of American Radiology Services, Inc. ("ARS"), including the
repayment of certain indebtedness of ARS; and ii) early repayment of its
C$190 million senior secured notes.
    CML HealthCare Income Fund now has 89,842,404 Fund Units issued and

    About CML HealthCare Income Fund

    CML HealthCare Income Fund is an unincorporated open-ended trust that
owns CML HealthCare Inc., one of Canada's largest healthcare services
businesses. Based in Mississauga, Ontario, CML HealthCare Inc. is a leading
provider of laboratory testing services in Ontario and the largest private
provider of medical imaging services in Canada. The Fund also owns American
Radiology Services, Inc., a leading provider of fully-integrated diagnostic
medical imaging services based in Baltimore, Maryland. CML HealthCare Income
Fund is publicly traded on the Toronto Stock Exchange under the symbol
"CLC.UN" and has approximately 89.8 million units outstanding. To reach CML
HealthCare Income Fund via the worldwide web log on to

    Caution concerning forward-looking statements
    Statements made in this news release, other than those concerning
historical financial information, may be forward-looking and therefore subject
to various risks and uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate", "expect",
"intend", or "continue" or the negative thereof or similar variations. Readers
are cautioned not to place undue reliance on such statements, as actual
results may differ materially from those expressed or implied in such
statements. Factors that could cause results to vary include, but are not
limited to: dependence on government-based revenues; pending and proposed
legislative or regulatory developments including the impact of changes in
laws, regulations and the enforcement thereof; intensifying competition from
established competitors and new entrants in the businesses in which we
operate; technological change; interest rate fluctuations and general economic
conditions; insurance coverage of sufficient scope to satisfy any liability
claims; fluctuations in operating results; dependence on our operating
subsidiary to pay its interest obligations; fluctuations in cash distributions
and capital investment; management of credit, market, liquidity and funding
and operational risks; judicial judgments and legal proceedings; our ability
to complete strategic acquisitions and to integrate our acquisitions
successfully; changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates; operational and infrastructure risks
including possible equipment failure and performance of information technology
systems; fluctuations in total patient referrals; loss of services of key
senior management personnel; other factors that may affect future growth and
results including, timely development and introduction of new products and
services; changes in our estimates relating to reserves and allowances; future
sales of units; changes in tax laws; technological changes and obsolescence,
natural disasters, the possible impact on our businesses from public health
emergencies, international conflicts and other developments including those
relating to terrorism; the effect of anyone or more of such events and risks
on our stability ratings and any changes thereto; and our success in
anticipating and managing the foregoing risks. Additional factors related to
the recent acquisition of American Radiology Services, Inc.("ARS") include,
but are not limited to, the Fund's ability to successfully integrate the
operations of ARS, additional liabilities or costs attributable to the
acquisition of ARS, unknown liabilities of ARS, the ability to retain senior
management of ARS, the ability to complete accretive acquisitions in the U.S.,
the continuation and nature of the relationship with The Johns Hopkins
University and The Johns Hopkins Health System Corporation (collectively
"Johns Hopkins") and changes in U.S. federal and state healthcare laws and
regulations, including with respect to Medicare and Medicaid reimbursements
    We caution that the foregoing list of factors is not exhaustive and that
when reviewing our forward-looking statements, investors and others should
refer to the "Risk Factors" section of the Fund's Annual Information Form, the
"Risks and Uncertainties" and other sections of our Management's Discussion
and Analysis of Operating Results and Financial Position and our other
periodic filings with Canadian securities regulatory authorities. All
forward-looking statements presented herein should be considered in
conjunction with such filings. The Fund does not undertake to update any
forward-looking statements; such statements speak only as of the date made.

    %SEDAR: 00020333E

For further information:

For further information: Bruce Wigle, Investor Relations, The Equicom
Group Inc., (416) 815-0700 ext. 228, (416) 815-0080 fax, Email:; Tom Weber, Chief Financial Officer, CML HealthCare
Income Fund, (905) 565-0043, (905) 565-2844 fax, Internet:

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