SickKids closes $100 million offering to fund major redevelopment project
The Hospital for Sick Children (SickKids) announced today that it has closed a $100 million offering of Series C Senior Unsecured Debentures. The 4.487% 40-year debentures will mature on December 8, 2063.
The net proceeds of the offering will be used to finance a portion of the costs of a multi-year project (Project Horizon) to transform SickKids’ infrastructure landscape – starting with the completion of the new Patient Support Centre (PSC) this year – and for SickKids’ general purposes.
SickKids’ major campus redevelopment project, Project Horizon, aims to transform virtually all clinical care and support areas of the hospital. The first phase of the project has just been completed with the opening of the new PSC on Elizabeth St. By housing approximately 3,000 staff from existing spaces, this new education, training and administrative building enables SickKids to proceed with the many renovations and relocations needed to clear space on the campus to build the new hospital (comprised of the Peter Gilgan Family Patient Care Tower and an outpatient tower) on University Ave.
The campus redevelopment is expected to be financed through a combination of philanthropic capital fundraising, government support and the proceeds of Series C Senior Unsecured Debentures and other sources.
“Our vision for precision child health is critically dependent on the renewal of our dated facilities. We need more technologically advanced and purpose-built spaces to support our talented clinicians and staff in the delivery of world-class care – and to ensure our patients and families have a seamless experience,” says Dr. Ronald Cohn, President and CEO, SickKids. “These key investments are helping us to ensure we remain one of the world’s best paediatric research hospitals, and that we can realize our mission to individualize child and youth care in a hospital of the future.”
The offering was made by way of a private placement, pursuant to certain exemptions from the prospectus requirements of applicable securities laws of the provinces of Canada.
The Series C Senior Unsecured Debentures have been assigned a rating of Aa3 by Moody’s Investors Service Inc.
CIBC Capital Markets acted as Financial Advisor and Sole Bookrunner on the offering. The offering was co-led by CIBC Capital Markets and RBC Capital Markets.
This news release includes certain forward-looking information that is based upon current expectations, which involves risks and uncertainties associated with SickKids and its operating environment. Such statements include any, in particular, statements about the use of proceeds from the offering of the Series C Unsecured Debentures and SickKids’ plans, strategies and prospects. Information contained herein that does not relate strictly to historical or current facts may be deemed to be forward-looking, including any identified by the expressions "anticipate", "should", "may", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to SickKids or its management. Forward-looking information is not historical fact, but reflects SickKids' current expectations regarding future results or events. This forward-looking information is subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations.