Mainstreet Health to Seek $95 Million in Canadian Share Offering

  • Toronto-based firm owns seniors facilities around Chicago
  • Proceeds from sale to be used to buy 13 more U.S. properties

Mainstreet Health Investments Inc., an owner of U.S. seniors facilities, is seeking to raise $95 million by selling shares in Canada and listing on the Toronto Stock Exchange.

Mainstreet Health aims to sell shares for $10 to $11 apiece, and it’s targeting an annual dividend yield of 7 percent to 7.4 percent, the Toronto-based company said in a May 9 filing with regulators. The sale is being led by Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada.

Mainstreet Health, created through a reverse takeover of Kingsway Arms Retirement Residences Inc., owns 10 senior housing and care properties around Chicago and plans to use the proceeds of the sale to buy 13 new properties in Pennsylvania, New York, Indiana and Kansas, according to the filing.

Canada is having one of its best years for equity financing, with C$19 billion ($14.7 billion) announced, and its worst year for initial stock sales, with no corporate IPOs so far and few on the horizon.

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