Extendicare closes $200-million private placement

Executive Summary

• Extendicare Inc. has completed a previously announced $200 million bought deal private placement of common shares, issuing 10.64 million shares at $18.80 per share.
• The net proceeds of approximately $192 million are designated to partially finance the acquisition of CBI Home Health LP and its subsidiaries by Extendicare’s wholly owned subsidiary, ParaMed Inc.
• Concurrent with the closing of the private placement, the $150 million equity bridge facility previously established to backstop the offering has been cancelled in its entirety.

Key Details

• Transaction Structure: Bought deal private placement of common shares.
• Shares Issued: 10.64 million offered shares.
• Issue Price: $18.80 per share.
• Gross Proceeds: Approximately $200 million.
• Net Proceeds: Approximately $192 million (after underwriters' fees and expenses).
• Use of Proceeds: To partially finance the acquisition of all equity interests of CBI Home Health LP and CBI (GP) 3 Inc. (and their respective subsidiaries) from CBI Health LP and CBI GP Holdco Inc.
• Underwriters: Co-led by CIBC Capital Markets (sole bookrunner) and BMO Capital Markets. Syndicate includes National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., ATB Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., and Desjardins Securities Inc.
• Investor Base: Accredited investors in all Canadian provinces and qualified institutional buyers in the United States (Rule 144A).
• Hold Period: Four-month hold period under applicable Canadian securities laws.
• Bridge Facility: The previously announced $150 million equity bridge facility entered into by Extendicare to backstop the private placement is cancelled in its entirety upon closing.

Notable Quotes

• No direct quotes from executives were included in the provided text.