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

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TORONTO, Oct. 5, 2012 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") announced today that it has filed, and obtained a receipt for, a final prospectus for its initial public offering of 13,879,700 common shares with the securities commissions of all provinces and territories of Canada. The common shares will be issued at a price of $10.00 per common share (the "Offering Price") and are expected to provide shareholders with an annual yield of 7.0%. The gross proceeds of the offering are expected to be approximately $138.8 million.

The offering is being underwritten by a syndicate of underwriters co-led by CIBC and BMO Capital Markets.  Regal 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 which, if exercised in full, would increase the total gross proceeds of the offering to approximately $159.6 million.  The offering is expected to close on October 16, 2012.

The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the common shares under the symbol "RLC", subject to the fulfillment of all the requirements of the TSX.

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 (assuming the closing occurs on October 16, 2012). Copies of the final prospectus will be 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 will acquire a portfolio consisting of income-producing retirement communities offering primarily independent serviced living and assisted living programs. The portfolio to be acquired will be 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 communities

Forward-Looking Statements

This 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, failure to complete the initial public offering of common shares and related transactions, and 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.

Simon Nyilassy,
President and Chief Executive Officer
Regal Lifestyle Communities Inc.
[phone] x 202

Or

Harry Atterton,
Chief Financial Officer
Regal Lifestyle Communities Inc.
[phone] x 203