HealthLease Properties Real Estate Investment Trust announces closing of Cdn$50 million bought deal offering of convertible unsecured subordinated debentures

CNW Group

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TORONTO , Nov. 12, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP-UN.TO) ("HealthLease" or the "REIT") is pleased to announce that it has completed its offering (the "Offering") of Cdn$50.0 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures due November 30, 2018 (the "Debentures"). The Debentures are convertible, at the option of the holder, into trust units of the REIT at a price of Cdn$14.00 per trust unit.

The Offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters led by BMO Capital Markets. The Debentures have been listed on the TSX under the symbol HLP.DB. As previously announced, HealthLease intends to use the net proceeds of the Offering to repay indebtedness incurred under the REIT's credit facility and for general business purposes.

The securities have not and will not be 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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About HealthLease Properties Real Estate Investment Trust

HealthLease owns one of the youngest and highest quality portfolios of seniors housing and care facilities with 12 properties located in two provinces of Canada and 32 properties located in eight states of the United States for a total of 4,335 beds. The facilities are leased to experienced tenant operators who have significant operational experience in the U.S. and Canada . 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 of premier properties 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.

Forward-Looking Information:

This press release contains forward-looking statements with respect to HealthLease and its operations, strategy, financial performance and financial condition, as well as with respect to the Offering. These statements generally can be identified by the use of forward-looking words such as "forecast", "may", "will", "would", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of HealthLease discussed herein could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of HealthLease. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to HealthLease and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of HealthLease. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, HealthLease specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Additional information about these assumptions and risks and uncertainties is contained in HealthLease's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at HealthLease's website at www.hlpreit.com.

SOURCE HealthLease Properties Real Estate Investment Trust

Contact:

Scott White
Executive Vice-President, Finance
HealthLease Properties REIT
swhite@hlpreit.com   
(317) 420-0205

Renée Lam
Investor Relations
TMX Equicom
RLam@tmxequicom.com  
(416) 815-0700 ext. 258

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