Invesque Inc. Announces Restrictions to Previously Announced 8.75% Convertible Debenture Partial Redemption
Toronto, Ontario, August 7, 2023 – Invesque Inc. (TSX: IVQ.U and IVQ) (the “Company” or “Invesque”) today announced that in connection with the Company’s ongoing negotiations with its primary credit facility lender, KeyBank National Association (“KeyBank” or the “Lender”) to refinance or extend the maturity date on its existing credit facility (the “Credit Facility”) between the Company and KeyBank, it has agreed to certain payment restrictions in an amendment to the Credit Facility (the “Amendment”).
The Amendment includes a restriction on the amount that the Company will pay debentureholders towards the partial redemption currently scheduled to occur on September 30, 2023 (“Partial Redemption”) of the Company’s 8.75% convertible debentures due on September 30, 2026 (“8.75% Convertible Debentures”). Specifically, the Company is restricted under the terms of the Amendment from redeeming more than US$4.828 million (10% of the outstanding principal balance) of the principal amount of the 8.75% Convertible Debentures under the Partial Redemption.
“Negotiating an extension or refinance with KeyBank is our highest priority,” commented Adlai Chester, the recently named Chief Financial Officer of Invesque. “The Company continues to work closely with KeyBank to refinance the existing Credit Facility, and we are optimistic that all parties will work together to agree on terms in the near future.”
The Company is a North American health care real estate company with an investment thesis focused on the premise that an aging demographic in North America will continue to utilize health care services in growing proportion to the overall economy. The Company currently capitalizes on this opportunity by investing in a portfolio of income-generating predominantly private pay seniors housing communities. The Company’s portfolio includes investments primarily in independent living, assisted living, and memory care, which are operated under long-term leases and joint venture arrangements with industry-leading operating partners. The Company’s portfolio also includes investments in owner-occupied seniors housing properties in which the Company owns the real estate, the licensed operations, and provides management services through Commonwealth Senior Living, LLC, a Delaware limited liability company. For more information, please visit www.invesque.com.
This press release (this “Press Release”) contains certain forward-looking information and/or statements (“forward-looking statements”), that reflect and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future including, without limitation, statements regarding the Company’s ability to refinance or extend the maturity on its existing credit facility and limitation of the Company’s ability to make payments towards the 8.75% Convertible Debentures, including under the Partial Redemption. Forward-looking statements are typically identified by terms such as “anticipate,” “believe,” “continue,” “expect,” “expectations,” “look,” “may,” “plan,” “project,” “should,” “will,” and other similar expressions that do not relate solely to historical matters and suggest future outcomes or events. Readers should not place undue reliance on forward-looking statements and are cautioned that forward-looking statements may not be appropriate for other purposes. Forward-looking statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company’s management. Forward-looking statements in this Press Release are subject to significant known and unknown risks, uncertainties, and other factors that are beyond the Company’s ability to predict or control, including the risk that the Company will not be able to refinance or extend the maturity on its existing debt facility or be permitted or able to make payments in connection with the 8.75% Convertible Debentures or the Partial Redemption, and 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 Company’s actual results may differ as a result of various factors, including without limitation, the risks described in the Company’s current annual information form and management’s discussion and analysis, available on SEDAR at www.sedar.com, which risks may be dependent on market factors and not entirely within the Company’s control. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, including its assumption that the Lender will be willing to refinance the existing facility on terms that are acceptable to the Company, actual results may differ from those suggested by the forward-looking statements for various reasons. These forward-looking statements reflect current expectations of the Company as of the date of this Press Release and speak only as of the date of this Press Release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which are given as of the date hereof, and not to use such forward-looking statements for anything other than the intended purpose. Further, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements contained in this Press Release are expressly qualified by this cautionary statement.
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