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Press Release

Sienna Senior Living Inc. Completes Acquisition of Two High-Quality Retirement Residences in Ontario


Posted on: 01 Dec 17

MARKHAM, Ontario, Dec. 01, 2017 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX:SIA) announced today that it has completed the previously announced acquisition (the “Acquisition”) of two market leading, high-quality residences located in Barrie, Ontario and Kingston, Ontario (the “Acquired Properties”), for an aggregate purchase price of approximately $164 million, subject to customary closing adjustments. 

The Acquired Properties consist of a combined 384 private-pay care suites providing independent living, assisted living and memory care.  The Acquired Properties are well located in attractive markets and have exceptional reputations in their respective communities.

As one of the Acquired Properties is currently in the final stage of lease-up, the aggregate purchase price includes a revenue guarantee of $1.0 million for a two-year term to be held in escrow and used by Sienna to complement cash flow from this residence.

The Acquisition and related transaction costs were financed through a combination of: (i) the assumption of approximately $62 million in existing property-level mortgages, at a weighted average interest rate of 3.6% and a weighted average term to maturity of 4.2 years; (ii) net proceeds of Sienna’s public offering of common shares which closed on November 3, 2017; and the remainder through (iii) draws on the Company's existing credit facilities.  The Company plans to up-finance the existing mortgages on the Acquired Properties in the near term, at which time the proceeds are expected to be used to repay debt incurred in connection with the Acquisition. 

ABOUT SIENNA SENIOR LIVING INC.

Sienna Senior Living is a leading seniors’ living provider with 73 residences in key markets in Canada. Sienna offers a full range of seniors’ living options, including independent and assisted living, long-term care, and specialized programs and services. Sienna also provides expert management services. Sienna is committed to national growth, while driving long-term value for shareholders. The company’s more than 11,000 employees are passionate about helping residents live fully every day, and were the driving force behind Sienna being named one of Canada’s Most Admired Corporate Cultures in 2017. For more information, please visit www.siennaliving.ca.

FORWARD-LOOKING STATEMENTS

Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words and include, among other things, the Company’s plans to up-finance the existing mortgages on the Acquired Properties in the near term and the Company’s expectation to repay debt incurred in connection with the Acquisition. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. Unanticipated events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect Sienna's current expectations as at the date of this news release and speak only as at the date of this news release. Sienna does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Nitin Jain
Chief Financial Officer and Chief Investment Officer
(905) 489-0787
Nitin.Jain@siennaliving.ca

GlobeNewswire
globenewswire.com

Last updated on: 04/12/2017

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