Transactions and Financing: Healthpeak concludes $ 3 billion credit facility; $ 132 million refinancing of Benedictine
Healthpeak Properties (NYSE: PEAK) has more credit at its disposal.
The Denver-based Real Estate Investment Trust (REIT) announced Monday that it has entered into a new unsecured revolving credit facility, with commitments totaling $ 3 billion. The facility reduces Healthpeak’s borrowing costs and extends the maturity date to January 30, 2026. In addition, the REIT controls two six-month maturity extensions, subject to certain conditions.
The credit facility has been arranged by BofA Securities, JPMorgan Chase Bank and Wells Fargo Securities. BofA Securities. and JPMorgan Chase were the associate bookkeepers for the credit facility. Bank of America acts as administrative agent and JPMorgan Chase Bank and Wells Fargo Bank acted as co-syndication agents for the credit facility.
Sales and operator transitions
Capitol Seniors Housing acquires 2 active adult communities in the Dallas area
Capitol Seniors Housing has acquired two active adult communities in the Dallas-Fort Worth market: The Orchards at Arlington Heights, a community of 180 units in Arlington; and The Orchards at Market Plaza, a community of 180 units in Plano. Both properties offer one and two bedroom options.
The seller, Kompass Kapital Management, was represented by JLL Capital Markets (NYSE: JLL) Managing Directors Cody Tremper and Mike Garbers in the transaction.
A joint venture comprising a subsidiary of Focus Healthcare Partners and Life Care Services has acquired Fountain View Village, a senior housing community in Fountain Hill, Ariz., Consisting of 90 independent living units, 68 assisted living units, 45 assisted living units, memory care and 48 additional memory units. units within a dedicated health center.
Life Care Services will manage the community.
Bryn Mawr Terrace sells to private operator
Bryn Mawr Terrace, a continuing care retirement community in Bryn Mawr, Pa., Has been sold to an undisclosed private operator. The community’s board of directors were advised on the sale by Lument’s Managing Director and Head of Mergers and Acquisitions Laca Wong-Hammond and Managing Partner Dominic Porretta.
The transaction included an assumption of the existing loan from the United States Department of Housing and Urban Development (HUD) / Federal Housing Administration (FHA) which is also managed by Lument, creating efficiencies in the closing process.
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Salmon Health and Retirement Sells Assisted Living and Qualified Nursing Facility in Massachusetts
Salmon Health and Retirement sold a retirement community in Northbridge, Massachusetts, consisting of 154 specialized nursing beds and 28 assisted living units. Salmon made the strategic decision to withdraw from skilled nursing and focus on its senior housing assets.
Blueprint Healthcare Real Estate Advisors Senior Managing Director and Business Development Director Steve Thomes, Executive Managing Director and Co-Founder Ben Firestone, and Managing Director Ben Firestone advised Salmon on the transaction.
HJ Sims finalizes $ 132 million financing package for Benedictine
HJ Sims has completed a $ 132.4 million refinancing program on behalf of Benedictine Health System in Cambridge, Minnesota.
Historically, most of Benedictine’s subsidiaries have been funded on a stand-alone basis, resulting in 36 rounds of outstanding debts for 19 different borrowers. The various sets of debts were held by eight different banks or departments with inconsistent terms, covenants and reporting requirements. Benedictine’s board and management team sought to update a capital framework to ensure growth, service line transformation and reinvestment in existing campuses. In August 2020, Sims was hired to lead this project.
Sims built an initial committed group, providing the foundation for Benedictine to achieve her financial goals. Sims created and used a multi-faceted decision matrix that takes into account factors specific to each subsidiary and its outstanding debt. Twenty-one seniors’ residences, 14 in Minnesota and seven in North Dakota, were selected for the mandatory group.
Sims focused on finalizing key provisions of the Master Trust Deed in order to give future flexibility to BÃ©nÃ©dictine’s organizational and financial structure. Sims determined the appropriate debt structure. As most of the existing debt was bank debt, a shorter amortization over 20 years was chosen to avoid an extension of the weighted average maturity of the debt. Taxable debt was chosen to refinance debt allocated to communities in North Dakota in order to avoid having to use two issuers and to give the Benedictines flexibility to repay the debt. Sims worked with legal counsel to gain host approval and execute joint power agreements between 20 municipalities or issuers across Minnesota.
The Banque des RÃ©gions organizes a construction loan of $ 36 million
Regions Bank has arranged a $ 35.9 million new construction and mini-permanent financing package for a 150 senior housing development in Chesterfield, Missouri. The property will include 96 self-contained units, 37 assisted-living units and 17 memory-care units.
Managing Director Chris Honn and Senior Vice President Jack Boulder initiated the Homeowners Funding, a joint venture between Shelbourne Healthcare and Cedarhurst Senior Living. The JV was represented by Greystone CEOs Matt Miller and Tyler Armstrong.
Fitch retrograde East Ridge Retirement Village in “CC”
Fitch Ratings downgraded the issuer’s default rating at East Ridge Retirement Village in Cutler Bay, Fla., To “CC” from “B-“, and downgraded the series healthcare facility’s revenue bond rating 2014 issued by the Alachua County Health Facilities Authority, on behalf of East Ridge Retirement Village. Fitch also removed oversight of negative ratings on IDR and Income Bonds.
The downgrade reflects Fitch’s belief that default, including debt restructuring, is likely during the forecast period. East Ridge is negotiating a forbearance agreement with its bondholders. Due to the breach of the supplier’s annual debt service coverage ratio commitment, bondholders have the right to expedite principal payments.
At East Ridge’s fiscal year 2020 end on December 30, 2020, the debt service coverage ratio was 0.68x and 0.42x through June 30, 2021. Continuous cash consumption, low rate Persistent occupancy, inability to generate sufficient net entry fees and high leverage contributed to East Ridge’s financial position.