Extendicare to draw on line of credit for Assisted Living acquisition

By Sara Rosenberg

New York, Nov. 4 - Extendicare Inc. plans to use borrowings under its line of credit, along with cash on hand, to help fund the acquisition of Assisted Living Concepts Inc. for about $280 million, according to a company news release.

Under the transaction agreement, Extendicare will pay $18.50 per share for Assisted Living's stock, totaling approximately $132 million, and will assume some debt.

The completion of the acquisition is subject to approval by Assisted Living's shareholders and customary regulatory approvals.

Closing is anticipated for early first quarter 2005.

Extendicare is a Markham, Ont.-based operator of long-term care facilities.

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