Leisureworld to Issue $322 Million of 3.474% Senior Secured Debentures

MARKHAM, ONTARIO--(Marketwired - Jan. 23, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Leisureworld Senior Care Corporation (TSX:LW) ("Leisureworld" or the "Company") today announced that its wholly-owned subsidiary, Leisureworld Senior Care LP ("LSCLP"), has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets to sell, on an underwritten basis, $322 million of aggregate principal amount of 3.474% Series B Senior Secured Debentures with a maturity date of February 3, 2021 (the "Series B Debentures").

The proceeds from the issuance of Series B Debentures will be used to repay all of the outstanding 4.814% Series A Senior Secured Debentures of LSCLP due November 24, 2015 (the "Series A Debentures") and to pay all associated fees and expenses. Notice of the early redemption of the Series A Debentures has been delivered by LSCLP.

The Series B Debentures, which will bear interest at 3.474% per year payable semi-annually, will be issued by LSCLP under a supplement to its existing master trust indenture. The terms of the Series B Debentures will include covenants to maintain a principal reserve fund to be used for bond repayment. The principal reserve fund will be funded by LSCLP at least semi-annually to a predetermined minimum balance of $45.5 million to be available for principal repayment by the maturity date of the Series B Debentures.

The Company previously announced that DBRS has assigned a provisional rating of A (low), with a Stable trend, to the Series B Senior Debentures.

Leisureworld expects that the Series B Debentures will be issued on February 3, 2014 and that the Series A Debentures will be fully repaid by February 24, 2014.

About Leisureworld

Leisureworld Senior Care Corporation is one of Canada's largest operators of seniors' housing and is the largest licensed long-term care provider in Ontario. Leisureworld has 7,500 employees and owns and operates 35 long-term care homes across Ontario with 5,733 beds. Leisureworld also owns and operates 10 retirement residences representing 1,065 suites, in Ontario and British Columbia. Under its management services division, Leisureworld provides management and consulting services to long-term care homes and retirement residences in Ontario. Leisureworld subsidiaries include, Preferred Health Care Services, an accredited provider of professional nursing and personal support services. For more information, please visit Leisureworld's website at www.leisureworld.ca.

Forward-Looking Statements

Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words and include, among other things, statements related to the Company's financial results or strategic plans. In particular, the Company's intention to issue the Series B Debentures, the expected terms of the Series B Debentures and the use of proceeds from the issuance of the Series B Debentures constitute forward-looking statements. Forward-looking statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The issuance of the Series B Debentures remains subject to the satisfaction of certain contractual conditions. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of Leisureworld as at the date of this news release and speak only as at the date of this news release. Leisureworld does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

Leisureworld Senior Care Corporation
Lois Cormack
Chief Executive Officer
(905) 415-7612

Leisureworld Senior Care Corporation
Tim McSorley
Chief Financial Officer (Interim)
(905) 477-4006 ext. 2089
www.leisureworld.ca