SickKids closes $300 million offering to fund major infrastructure transformation project
TORONTO – The Hospital for Sick Children (SickKids) announced today that it has closed a $300 million offering of Series B Senior Unsecured Debentures. The 3.416 per cent 40-year debentures will mature on December 7, 2057.
The net proceeds of the offering will be used to finance a portion of the costs of a new multi-year project to transform SickKids’ infrastructure landscape, including the construction of a new Patient Support Centre.
SickKids’ major campus redevelopment project aims to address significant deficiencies in its current clinical care facilities. The first phase of the project will be the new Patient Support Centre on Elizabeth St., which will then enable SickKids to develop a new Patient Care Centre on University Ave.
The campus redevelopment is expected to be financed through a combination of philanthropic capital fundraising, government support and the proceeds of the offering of Series B Senior Unsecured Debentures and other sources.
“SickKids’ current infrastructure is not meeting the needs of today’s patients. To address both current and future needs, we require spaces that are flexible, accommodate evolving technologies, and take into account rising hospital patient activity and acuity,” says Dr. Michael Apkon, President and CEO of SickKids. “We are at an important crossroads. Investments in physical infrastructure are urgently needed to ensure Ontario’s children receive the best care available. Our investors will play an integral role in addressing today’s challenges while bringing our future vision to life.”
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 B Senior Unsecured Debentures have been assigned a rating of Aa2 by Moody’s Investors Service Inc. and A+ by S&P Global Ratings.
The offering was led by CIBC World Markets Inc. and RBC Capital Markets. SickKids also engaged McCarthy Tétrault as external legal counsel on this transaction.
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. 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.
About The Hospital for Sick Children
The Hospital for Sick Children (SickKids) is recognized as one of the world’s foremost paediatric health-care institutions and is Canada’s leading centre dedicated to advancing children’s health through the integration of patient care, research and education. Founded in 1875 and affiliated with the University of Toronto, SickKids is one of Canada’s most research-intensive hospitals and has generated discoveries that have helped children globally. Its mission is to provide the best in complex and specialized child and family-centred care; pioneer scientific and clinical advancements; share expertise; foster an academic environment that nurtures health-care professionals; and champion an accessible, comprehensive and sustainable child health system. SickKids is proud of its vision for Healthier Children. A Better World. For more information, please visit www.sickkids.ca. Follow us on Twitter (@SickKidsNews) and Instagram (@SickKidsToronto).
The Hospital for Sick Children
416-813-7654, ext. 202059