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Invesque Inc. Closes on Acquisition of the Final Three Communities Comprising the Commonwealth Senior Living Portfolio Transaction
Invesque Inc. Closes on Acquisition of the Final Three Communities Comprising the Commonwe...
About this update from Invesque Inc
[{"type":"text","content":"\n\n\n\nInvesque Inc. Closes on Acquisition of the Final Three Communities Comprising the Commonwealth Senior Living Portfolio Transaction\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 24, 2019\n\n\n\nTORONTO, Dec. 24, 2019 /CNW/ - Invesque Inc. (TSX: IVQ.U and IVQ) (\"Invesque\" or the \"Company\") announced the closing of the previously announced acquisition of three private pay senior living communities comprising 196 units with 234 beds (the \"Second Tranche\"). The closing represents the last three communities comprising the Commonwealth Senior Living (\"CSL\") portfolio transaction announced on May 22, 2019.\nThe aggregate purchase price for the Second Tranche was approximately US$55.0 million. The consideration was funded through a combination of the assumption of existing debt of approximately US$34.7 million, the issuance of approximately US$12.1 million of preferred interests (the \"Preferred Interests\") in the Invesque acquisition vehicle used to acquire the first tranche of Commonwealth communities and the Second Tranche (\"Foxhound LLC\"), and cash. \nThe Preferred Interests are similar to those issued at the closing of the first tranche of Commonwealth communities announced August 1, 2019 and will be initially exchangeable by holders into common shares of the Company at a fixed exchange price of US$9.75 per Invesque common share. The Preferred Interests have an initial dividend rate of 6.50% per annum and have a liquidation value equal to their unreturned initial capital contribution and any accrued and unpaid dividends. Additionally, under certain circumstances, Foxhound LLC will have the right to redeem the Preferred Interests at its discretion for an amount specified in its operating agreement.\nACQUISITION HIGHLIGHTS:\nImproved Portfolio Diversification: The closing of the Second Tranche further diversifies the Company's revenue sources into private pay seniors housing which will represent approximately 55% of pro forma net operating income (\"NOI\") of the Company.Alignment of Shareholder Value: The issuanc...