HealthLease announces completion of plan of arrangement and issues redemption notice for outstanding convertible debentures

TORONTO, Nov. 19, 2014 /CNW/ - HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) ("HealthLease" or the "REIT") today announced that Health Care REIT, Inc. ("HCN") has completed its previously announced acquisition of the REIT pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Transaction"). The Transaction, which was announced on August 12, 2014, was approved by the unitholders of the REIT at the special meeting of the REIT held on October 27, 2014. 

Pursuant to the terms of the Transaction, holders of outstanding trust units of the REIT are entitled to $14.20 in cash per trust unit, net of applicable withholdings.

In addition, pursuant to a notice of redemption sent today under the trust indenture between the REIT and Equity Financial Trust Company, the 5.75% convertible unsecured subordinated debentures of the REIT due November 30, 2018 (the "Debentures") will be redeemed for cash at a redemption price of 109.5% of the aggregate principal amount thereof, plus accrued interest up to, but not including, the redemption date of November 28, 2014.

The trust units of the REIT are expected to be delisted from the Toronto Stock Exchange in two to three business days. It is expected that the Debentures will be delisted from Toronto Stock Exchange concurrently with their redemption.

Disclaimer

Forward Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The specific forward-looking statements in this press release include statements with respect to the redemption of the Debentures and their delisting from the Toronto Stock Exchange.

Although the forward-looking statements contained in this press release are based upon assumptions that management of the REIT believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT's control. The forward-looking statements made in this press release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns 52 seniors housing and health care facilities – 13 in two Canadian provinces and 39 in eight U.S. states, for a total of 5,224 beds. The REIT has entered into a contract to acquire one additional property and such acquisition is expected to close in 2014. The facilities are leased to experienced tenant operators who have significant operational experience. The leases are structured as long-term and triple-net: features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio meets the growing demands of modern seniors by emphasizing features such as hotel-like design, private rooms and baths and hospitality-inspired amenities. For more information, visit www.hlpreit.com.

About Health Care REIT, Inc.

HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. HCN also provides an extensive array of property management and development services. As of September 30, 2014, HCN's broadly diversified portfolio consisted of 1,246 properties in 46 states, the United Kingdom, and Canada. More information is available on the company's website at www.hcreit.com.

SOURCE: HealthLease Properties Real Estate Investment Trust