Chartwell Announces Issuance of $200 Million of 3.786% Series A Senior Unsecured Debentures

MISSISSAUGA, ON--(Marketwired - June 06, 2017) -

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

Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today that it has agreed to issue $200 million aggregate principal amount of series A senior unsecured debentures (the "Debentures"). The Debentures will bear interest at a rate of 3.786% per annum and will mature on December 11, 2023. The Debentures will be unconditionally guaranteed by Chartwell Master Care LP. The Debentures are being offered on a reasonable best efforts agency basis by a syndicate of agents co-led by CIBC Capital Markets and BMO Capital Markets with CIBC Capital Markets acting as sole bookrunner. The offering is expected to close on or about June 9, 2017, subject to satisfaction of customary closing conditions. DBRS Limited has assigned a provisional rating of "BBB (low)" 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 (low)" with a "Stable" trend.

Chartwell intends to use the net proceeds from this offering to fund a portion of the purchase price of the previously-announced acquisitions of three retirement residences in Ontario, for potential future acquisitions, to repay a portion of existing indebtedness under Chartwell's new credit facilities and for general trust purposes.

The offering is being made by way of a private placement to "accredited investors" in the Province of Alberta and pursuant to the "minimum amount investment" exemption in each of the other 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 Chartwell
Chartwell is an unincorporated, open-ended trust which indirectly owns and operates a complete range of seniors housing communities from independent supportive living through assisted living to long term care. It is the largest owner and operator of seniors residences in Canada. Chartwell's aim is to capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of seniors housing communities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. More information can be obtained at www.chartwell.com.

Forward-Looking Information
This press release contains forward-looking information that reflects the current expectations, estimates and projections of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. The words "plans", "expects", "scheduled", "estimates", "intends", "anticipates", "projects", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might" occur and other similar expressions, identify forward-looking statements. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements.

While we anticipate that subsequent events and developments may cause our views to change, we do not intend to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking information. These factors are not intended to represent a complete list of the factors that could affect us. See "Risks and Uncertainties" in our management's discussion and analysis of results of operations and financial condition for the year ended December 31, 2016 and in our management's discussion and analysis of results of operations and financial condition for the three months ended March 31, 2017, and risk factors highlighted in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form.