Macquarie International Infrastructure Fund (MIIF) says Leisureworld Senior Care Corporation has filed a preliminary prospectus with the Canadian securities regulatory authorities in relation to a proposed initial public offering of common shares.
With the net proceeds of the IPO, Leisureworld will acquire 100% of the ownership interests in the Canadian Aged Care (CAC) portfolio (also known as Leisureworld Senior Care LP) from Macquarie Power & Infrastructure Income Fund and Macquarie Group.
MIIF owns a 55% economic interest in CAC by way of total return swaps (TRS) with Macquarie Group. MIIF’s valuation of its 55% interest in CAC is $91.5 million as at 30 Sept 30 2009.
As a result of the offering, MIIF intends to terminate its TRS with Macquarie Group. Upon completion, MIIF is expected to receive a settlement equivalent to 55% of the net proceeds from the IPO.