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Mainstreet Health to seek $95M in Canadian share offering

May 10, 2016

Mainstreet Health Investments Inc., an owner of U.S. senior-living facilities, is seeking to raise $95 million by selling shares in Canada and listing on the Toronto Stock Exchange.

Mainstreet Health Investments is headquartered in Toronto but controlled by Carmel-based real estate developer Mainstreet Property Group.

The company aims to sell shares for $10 to $11 apiece, and it’s targeting an annual dividend yield of 7 percent to 7.4 percent, Mainstreet said Monday in a filing with regulators. The sale is being led by Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada.

Mainstreet Health Investments was created through a $302 million reverse takeover of Kingsway Arms Retirement Residences Inc., which owned 10 senior housing and care properties around Chicago. The reverse takeover was announced Nov. 6 and completed April 4.

The deal put Mainstreet CEO Zeke Turner and his management team in charge of Kingsway and gave Mainstreet a publicly traded investment firm to help finance its development projects.

Mainstreet Health Investments plans to use the proceeds of the sale to buy 13 new properties in Pennsylvania, New York, Indiana and Kansas, according to the filing.

Canada is having one of its best years for equity financing, with $14.7 billion in deals announced, and its worst year for initial stock sales, with no corporate IPOs so far and few on the horizon.

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