Chartwell Announces $400 Million Offering of Senior Unsecured Debentures

Chartwell Retirement Residences (TSX: CSH.UN) has announced a significant capital raise, with the issuance of $400 million in senior unsecured debentures. The offering consists of two tranches: $200 million in Series E debentures with a 3.650% interest rate and a maturity date of May 6, 2028, and $200 million in Series F debentures with a 4.500% interest rate and a maturity date of March 6, 2032. The debentures are unconditionally guaranteed by Chartwell Master Care LP and are being offered on an agency basis by a syndicate of agents led by TD Securities Inc., BMO Capital Markets, and Scotiabank as joint bookrunners.

The proceeds from the offering will be used to repay existing indebtedness, including the Company's maturing 3.786% Series A senior unsecured debentures and a portion of existing indebtedness under its secured credit facility. The remainder, if any, will be used to finance future acquisitions, supporting Chartwell's growth strategy.

DBRS Limited has assigned provisional ratings of "BBB (low)" with a "Stable" trend to the debentures. The final ratings are subject to DBRS Limited's approval, which is a condition to the closing of the offering.

Chartwell is an unincorporated, open-ended real estate trust that indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long-term care. With approximately 25,000 residents in four provinces across Canada, Chartwell is one of the largest operators in the country.

The issuance of senior unsecured debentures allows Chartwell to access capital markets, refinance existing debts, and secure funding for future acquisitions. This strategic move aligns with the Company's long-term investment strategy, focusing on managing debt obligations, maintaining a strong balance sheet, and expanding its portfolio of retirement residences.

In conclusion, Chartwell's $400 million offering of senior unsecured debentures demonstrates the Company's commitment to managing its debt obligations, accessing capital markets, and financing future acquisitions. This strategic move supports Chartwell's long-term investment strategy and positions the Company for continued growth and success in the seniors housing industry.