Extendicare Completes Major $200 Million Common Shares Placement
MARKHAM, Ontario — Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) has successfully executed a significant private placement of common shares, boosting its financial resources for forthcoming opportunities. This strategic move was publicly announced and has culminated in the issuance of 10,640,000 shares at an attractive price of $18.80 each, generating gross proceeds nearing $200 million.
Private Placement Overview
The private placement was led by CIBC Capital Markets, serving as the sole bookrunner, working alongside BMO Capital Markets and a distinguished syndicate of underwriters. This collaboration paves the way for an efficient process, showcasing the confidence of major financial institutions in Extendicare's strategic direction.
Funding Strategic Acquisitions
The net proceeds from this private placement, approximately $192 million after deducting underwriters' fees and expenses, are intended for strategic acquisitions aimed at enhancing Extendicare's service offerings. This funding will play a pivotal role in the planned acquisition of CBI Home Health, solidifying Extendicare’s position as a leader in home health services.
Regulatory Compliance and Availability
The common shares were offered to accredited investors across Canada and qualified institutional buyers under U.S. regulations, ensuring compliance with securities laws. Subject to a four-month hold period, this strategic move reflects Extendicare’s commitment to scaling its operations effectively.
Impact on Existing Financial Arrangements
Upon the closure of this private placement, the $150 million equity bridge facility previously arranged to support this placement will be fully cancelled, signaling a robust financial position without reliance on temporary funding arrangements.
About Extendicare
Extendicare is a prominent provider of quality care for seniors in Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network. The Company's mission focuses on delivering personalized care, adapting to the diverse needs of the senior population.
Service and Operational Reach
With a network comprising 99 long-term care facilities, Extendicare delivers around 13.5 million hours of home health care annually. The Company also offers group purchasing services for third parties, serving a broad range of sectors and ensuring high-quality care across approximately 152,100 beds nationwide. Their workforce of roughly 28,000 dedicated professionals exemplifies the Company's commitment to utmost care and compassion.
Future Outlook
As Extendicare forges ahead, it remains focused on augmenting its services, expanding its reach, and enhancing operational efficiencies. The recent capital raise equips the Company to navigate the challenges in the healthcare landscape while prioritizing its mission to improve the quality of life for seniors.
Frequently Asked Questions
What was the amount raised in the private placement?
Extendicare raised approximately $200 million through the private placement of common shares.
Who were the underwriters for the private placement?
The private placement was co-led by CIBC Capital Markets and BMO Capital Markets, along with a syndicate that included other prominent financial institutions.
What will the proceeds from the private placement be used for?
The proceeds will primarily be used to fund the acquisition of CBI Home Health, enhancing Extendicare's service offerings.
Are the shares subject to any hold period?
Yes, the shares are subject to a four-month hold period under applicable securities laws.
What is Extendicare's mission?
Extendicare's mission is to provide personalized care for seniors, adapting to their diverse needs and improving their quality of life.
