Chartwell Retirement Residences announced that it has entered into agreements with a syndicate of Canadian financial institutions, led by Bank of Montreal and The Toronto-Dominion Bank, for two new credit facilities  totalling $300 million with accordion options for an additional $150 million. The new Credit Facilities replace the existing $200 million and $50 million credit facilities maturing in June 2018.

"These new Credit Facilities provide us with increased flexibility to execute on our strategic priorities," commented Vlad Volodarski, Chief Financial Officer and Chief Investment Officer. "We are particularly pleased to arrange our first unsecured credit facility, which is a clear recognition of our improved financial position and our strong credit profile."

The Credit Facilities have three-year terms maturing in May 2020 and will include annual extension options.

The first credit facility is a $100 million unsecured facility which can be increased by up to $50 million during the term. The amounts borrowed under the Unsecured Facility will bear interest at rates ranging from Bankers' Acceptance rate plus 180 basis points ("bps") to BA plus 210 bps or, Prime rate ("Prime") plus 80 bps to Prime plus 110 bps, based on Chartwell's overall leverage ratio, as defined in the credit agreement.

The second credit facility is a $200 million secured facility which can be increased by up to $100 million during the term. The facility is secured by charges over 20 properties. The amounts borrowed under the Secured Facility will bear interest at rates ranging from BA plus 165 bps points to BA plus 185 bps or, Prime plus 65 bps to Prime plus 85 bps, based on Chartwell's overall leverage ratio, as defined in the credit agreement.

The Credit Facilities include covenants generally applicable to such facilities, such as limitations on overall leverage ratio, debt service coverage ratio, distributions payout ratio and, in the case of the Unsecured Facility, secured indebtedness ratio and unencumbered asset value ratio.