Sienna Announces Completion of a $200 Million Unsecured Revolving Credit Facility
MARKHAM, Ontario, March 19, 2020 (GLOBE NEWSWIRE) — Sienna Senior Living Inc. (“Sienna”) (TSX: SIA) announced today that it has entered into a credit agreement with a syndicate of lenders led by a Canadian chartered bank for a $200 million senior unsecured revolving credit facility (the “Credit Facility”). The Credit Facility will mature on March 19, 2025 and may be extended for additional one-year terms, subject to certain conditions. The capacity of the Credit Facility may be increased by up to $50 million during the term of the facility, subject to certain conditions. Sienna’s current “BBB” credit rating provides for borrowings at interest rates based on the bankers’ acceptance rate plus 145 basis points (“bps”) or the prime rate plus 45 bps.
“We are pleased with the recognition by our lending partners of the strength of Sienna’s business and balance sheet, which has resulted in our ability to source an unsecured credit facility on favorable terms. This facility contributes to the strength of our liquidity and provides Sienna with increased financial flexibility. We are grateful for the continued support from our lending partners,” said Lois Cormack, President and CEO of Sienna Senior Living.Sienna intends to use the net proceeds from the Credit Facility for general corporate purposes. As at today’s date, Sienna’s liquidity comprised of cash on hand and available credit facilities is approximately $215 million, inclusive of the Credit Facility, and value of the pool of unencumbered assets currently on hand is approximately $540 million.About Sienna Senior LivingSienna Senior Living Inc. (TSX:SIA) is a leading seniors’ living provider with 83 seniors’ living residences in key markets in Canada. Sienna offers a full range of seniors’ living options, including independent living, 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. Sienna’s approximately 12,000 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. For more information, please visit www.siennaliving.ca.Forward-Looking InformationCertain 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,” “goals” or other similar words and include, among other things, statements regarding the intended use of proceeds from the Credit Facility and maintenance of a “BBB” credit rating.. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. The Company 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 & Chief Investment Officer