NASHVILLE, Tenn., Dec. 11, 2018 /PRNewswire/ -- Brookdale Senior
Living Inc. (NYSE: BKD) announced today that the Company has
recently completed two significant financing transactions.
Steven Swain, Brookdale's
Executive Vice President and Chief Financial Officer, commented,
"We are pleased to have closed the two transactions before year
end. The transactions are net-neutral to our current
liquidity, and they play a key role in providing flexibility
in our capital structure, extending maturities and diversifying our
exposure to fixed and variable interest rates. We would like to
thank Capital One and the other members of our lending group for
amending and extending our previous revolving credit facility and
to express appreciation to Freddie Mac and Berkadia as well for
partnering with us on Freddie Mac's new and innovative loan
structure."
Credit Facility
On December 5,
2018, the Company entered into an amended and restated
credit agreement with lenders led by Capital One, National
Association as lead arranger and sole book runner. The
amended agreement replaced the Company's former credit agreement
and extended the maturity date from January
3, 2020 to January 3, 2024.
The amended credit agreement provides commitments for a
$250 million revolving credit
facility with a $60 million sublimit
for letters of credit and a $50
million swingline feature. Benefits from the new
credit facility include a lower variable rate margin over LIBOR, a
small expansion of the letter of credit sublimit, and a slightly
more flexible fixed charge coverage covenant. Participating
lenders include Wells Fargo Bank, N.A., PNC Bank, National
Association, Morgan Stanley Senior Funding, Inc., Bank of America,
N.A., Goldman Sachs Bank USA,
JPMorgan Chase Bank, N.A., and First Tennessee Bank National
Association.
The revolving credit facility is currently secured by first
priority mortgages on 15 communities and negative pledges on two
communities, and allows for both the removal and addition of
collateral. Available capacity under the facility will vary from
time to time based upon borrowing base calculations related to the
appraised value and performance of the communities securing the
credit facility and the Company's consolidated fixed charge
coverage ratio. The amended agreement also provides the Company an
accordion option to increase the revolving credit facility by an
additional $100 million, subject to
obtaining commitments for the additional amounts. Amounts
drawn on the credit facility may be used for general corporate
purposes.
Freddie Mac Financing
On November 16, 2018, the Company obtained
$327 million of mortgage financing
from Berkadia Commercial Mortgage LLC in a Freddie Mac Structured
Pool Transaction. The non-recourse mortgage financing has a
ten-year term and is secured by first priority mortgages on
28 senior living communities, most of which had collateralized
the former credit facility or other loans with near-term maturity
dates. Approximately 65% of the principal bears interest at a
fixed rate, with the remainder at a variable rate. The
mortgage financing allows for certain asset substitutions and
partial releases.
About Brookdale Senior Living
Brookdale Senior Living
Inc. is the leading operator of senior living communities
throughout the United States. The Company is committed to
providing senior living solutions primarily within properties that
are designed, purpose-built and operated to provide the
highest-quality service, care and living accommodations for
residents. Brookdale operates independent living, assisted
living, and dementia-care communities and continuing care
retirement centers, with approximately 961 communities in 46 states
and the ability to serve approximately 93,000 residents as of
September 30, 2018. Through its
ancillary services program, the Company also offers a range of home
health, hospice and outpatient therapy services. Brookdale's
stock is traded on the New York Stock Exchange under the ticker
symbol BKD.
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SOURCE Brookdale Senior Living Inc.