Sienna Senior LivingInc. completed its previously announced bought-deal of subscription receipts at a priceof C$15.85 per receipt, generating total gross proceeds of about C$138.3 million.
The company said the syndicate of underwriters led by TD SecuritiesInc. decided to exercise its overallotment option in full, resulting in the issuanceof 8,728,500 subscription receipts.
Sienna Senior plans to use the proceeds to finance a portionof its acquisition of a portfolio of seniors-housing assets in British Columbia;options to acquire up to a 100% interest, at a discount to fair market value, intwo additional newly built seniors-housing assets; and a 50% interest in PacificSeniors Management General Partnership, the current manager and operator of sixlong-term care residences to be acquired in the portfolio deal.
The company expects to close the acquisition in the third quarter.
Each subscription receipt represents the right to receive onecommon share at no additional consideration on the closing of the acquisition. Inaddition, while the subscription receipts remain outstanding, holders will be entitledto receive cash payments per subscription receipt equal to, and paid on the samedate as, dividends declared by Sienna on the shares.
Such payments will have the same record date as the underlyingshares.
It is expected that the first dividend equivalent payment buyersunder the offering will be eligible to receive will be payable June 15 to holdersof record May 31.