Sienna Senior Living Plans $125 Million Equity Offering
Sienna Senior Living Pursues Significant Equity Offering
Sienna Senior Living Inc. (TSX: SIA) has announced its intention to conduct a $125 million bought deal public equity offering. This move reflects the company's commitment to strengthening its financial foundation and enabling strategic expansions in the senior living sector.
Details of the Offering
The company has partnered with a syndicate of underwriters led by TD Securities Inc. to manage the offering. Under the terms of the agreement, the underwriters are set to purchase 7,920,000 common shares at a price of $15.80 per share, with an option for an additional purchase of 1,188,000 shares. Should the underwriters fully exercise their option, the gross proceeds could rise to approximately $144 million.
Use of Proceeds
Sienna plans to allocate the net proceeds from this offering towards the acquisition of two significant properties: Wildpine Residence and Cawthra Gardens. Wildpine Residence features 165 suites in the Ottawa suburb and is being acquired for about $48 million. Financing for this purchase will include assuming a portion of existing assumptions and using a part of the proceeds from the offering. Additionally, Cawthra Gardens, a 192-bed long-term care home, is set to be purchased for approximately $32.6 million, adding valuable assets to Sienna's portfolio.
Acquisition Benefits
The acquisitions of Wildpine Residence and Cawthra Gardens are expected to be accretive to Sienna's annualized funds from operations (AFFO) per share, which highlights the company's strategic growth strategy. Both properties offer modern amenities and are situated within desirable markets. Sienna's commitment to acquiring these properties at attractive capitalization rates further showcases its focus on maintaining a competitive edge in senior living.
Future Growth Initiatives
Beyond these acquisitions, Sienna is poised for further growth. The company recognizes the importance of balance sheet flexibility, which this offering will enhance. With a steady pipeline of potential acquisition opportunities, Sienna is evaluating various properties that align with its long-term strategic objectives. The management's prudent capital allocation ensures that Sienna remains well-positioned to capitalize on favorable market conditions as they arise.
Regulatory Compliance and Closing
The completion of these acquisitions is subject to customary conditions, including regulatory approvals. Sienna is proceeding with its plans in full compliance with Canadian securities regulations, and the offering's prospectus will be filed within the requisite time frame. The anticipated close date for this offering is projected for late February 2025.
About Sienna Senior Living
With a reputation for excellence, Sienna Senior Living Inc. provides a comprehensive range of services including independent living, assisted living, and memory care. The company employs around 13,500 dedicated staff members who strive to create joyful living experiences for seniors. Sienna aims to expand its footprint further, serving communities with top-notch senior living solutions.
Frequently Asked Questions
What is the purpose of Sienna's $125 million offering?
The funds raised will primarily finance the acquisitions of two properties and support future growth initiatives.
How many shares is Sienna planning to offer?
Sienna plans to offer 7,920,000 common shares, with an option to sell an additional 1,188,000 shares.
What properties are being acquired through this offering?
Sienna is acquiring Wildpine Residence and Cawthra Gardens, two well-positioned senior living facilities.
How will these acquisitions benefit Sienna?
Both acquisitions are expected to be accretive to Sienna’s annualized funds from operations (AFFO) per share.
When is the expected closing date for this offering?
The offering is anticipated to close around late February 2025, pending regulatory approvals.
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