Sienna Announces Pricing of $175 Million Aggregate Principal Amount of 3.45% Series B Senior Unsecured Debentures and Plans to Enter Into a $100 Million Secured Term Credit Facility

Sienna Announces Pricing of $175 Million Aggregate Principal Amount of 3.45% Series B Senior Unsecured Debentures and Plans to Enter Into a $100 Million Secured Term Credit Facility

NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

MARKHAM, Ontario, Sept. 16, 2020 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna”) (TSX: SIA) announced today that it has agreed to issue $175 million aggregate principal amount of series B senior unsecured debentures (the “Debentures”). The Debentures will bear interest at a rate of 3.45% per annum and will mature on February 27, 2026. The Debentures are being offered (the “Offering”) on a best efforts agency basis by a syndicate of agents led by BMO Capital Markets and TD Securities, as joint lead bookrunners, and CIBC Capital Markets as additional joint lead. The Offering is expected to close on or about October 2, 2020, subject to satisfaction of customary closing conditions. DBRS Limited has assigned a provisional rating of “BBB” with a “Stable” trend to the Debentures. It is a condition to the closing of the Offering that DBRS Limited assign a final rating to the Debentures of “BBB” with a “Stable” trend.

Contemporaneous with the closing of the Offering, Sienna expects to enter into a $100 million secured term credit facility (the “Credit Facility”). It is expected that the Credit Facility will have an initial term of one year and may be extended for an additional one-year term, subject to certain conditions. The Credit Facility is expected to be secured by three retirement residences of Sienna.

Sienna intends to use the net proceeds from the Offering and the Credit Facility, together with other sources of liquidity, to repay existing indebtedness, including the redemption of all of the outstanding 3.474% Series B Senior Secured Debentures due February 3, 2021 (the “Series B Secured Debentures”) of Sienna’s wholly-owned subsidiary, Leisureworld Senior Care LP (“LSCLP”), and for general corporate purposes. Notice of the early redemption of the Series B Secured Debentures has been delivered by LSCLP. It is expected that the Series B Secured Debentures will be fully repaid on October 2, 2020.

The Offering is being made by way of a private placement in each of the provinces of Canada.

The Debentures have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Sienna Senior Living

Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors’ living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna’s approximately 13,000 employees are passionate about helping residents live fully every day. For more information, please visit www.siennaliving.ca.

Forward-Looking Information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of Sienna and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may” “estimate”, “pro-forma” and other similar expressions. These statements are based on Sienna’s expectations, estimates, forecasts and projections and include, without limitation, statements with respect to the entrance into of the Credit Facility, intended use of proceeds, date of closing of the Offering and the Credit Facility and date of redemption of the Series B Secured Debentures. The forward-looking statements in this news release are based on certain assumptions, including that all conditions to completion of the Offering and the Credit Facility will be satisfied or waived. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in Sienna’s most recent annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Sienna assumes no obligation to publicly update any such statement, whether as a result of new information, future events or otherwise.

For further information, please contract:
Karen Hon
Chief Financial Officer & Senior Vice President
(905) 489-0254
karen.hon@siennaliving.ca

Nancy Webb
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
nancy.webb@siennaliving.ca