08:20 AM EDT, 10/17/2024 (MT Newswires) -- Invesque Inc. ( MHIVF ) announced Thursday several transaction and refinancing updates, as well as changes to the previously announced proposed amendments to the company's debentures and preferred share exchange.

Within its Transaction & Refinancing Updates, the company said it has entered into a definitive agreement to sell its interest in 20 seniors housing assets currently managed by Commonwealth Senior Living (CSL) and the company's interests in the CSL management company. The proposed sale transaction includes pricing above the company's depreciated book value and after the release of US$222.0 million in mortgage debt, the release of US$58.6 million in preferred equity plus any accrued and unpaid preferred return, and payment of other standard working capital adjustments, will provide cash proceeds which will be used to further reduce borrowings under the KeyBank credit facility and retained to maintain appropriate liquidity levels. Invesque ( MHIVF ) expects this sale to close during the first quarter of 2025, subject to satisfaction or waiver of a due diligence condition in favour of the purchaser and other customary closing conditions. Accordingly, it said, there is no certainty that this transaction will close on the expected timeline or at all.

Meanwhile, following previously flagged proposed amendments to the company's 7.00% Convertible Unsecured Subordinated Debentures due January 31, 2025, and its 8.75% Convertible Unsecured Subordinated Debentures due September 30, 2026, Invesque ( MHIVF ) said it has continued discussions with holders of the 2025 Debentures and 2026 Debentures and Magnetar Financial LLC which resulted in further changes to the proposed deal terms.

Adlai Chester, Invesque ( MHIVF ) CEO, in a statement said, "I am pleased to highlight the continued execution of our strategy to reduce our overall leverage while retaining a core portfolio of strong cash flowing seniors housing assets. The recent dispositions and the KeyBank paydowns associated with them, as well as several refinancings over the last 120 days, have reduced our leverage point with KeyBank to below 60%, providing additional flexibility for the company as we continue our path forward.

"The CSL portfolio has been an important part of Invesque's ( MHIVF ) story since it was acquired in August 2019 and the decision to sell this portfolio and our ownership stake in the management company was not an easy one given the alignment with our company strategy to be seniors housing real estate focused. We believe that the favorable impact to leverage following the sale via the reduction of mortgage debt and release of preferred equity, made for a compelling transaction that was worth pursuing."

Chester added, "assuming the closing of all disclosed transactions, the company will have reduced its leverage to below 50%, which will represent a reduction of over 30% compared to the balance sheet as of June 30, 2024. This substantial reduction is a result of the company's stated strategy to de-risk and streamline our balance sheet."