NASHVILLE, Tenn., Dec. 27,
2023 /PRNewswire/ -- Brookdale Senior Living Inc.
(NYSE: BKD) ("Brookdale" or "the Company") announced today that the
Company has recently completed two financing transactions, which
refinanced all of its remaining 2024 debt maturities. After giving
effect to these transactions, the Company's next debt maturity
without extension options is September
2025.
The Company has also made significant progress on a financing
transaction involving eleven of its currently unencumbered owned
communities, which it expects to complete in the coming months.
Additionally, in December 2023,
the Company sold its remaining 20% equity interest in its Health
Care Services unconsolidated venture and received aggregate
proceeds of approximately $27 million
in connection with the transaction. The Company previously
decreased this investment upon a sale of a portion of the venture
in November 2021.
"We believe the positive strides we have made in 2023 are
reflected in these completed financing transactions, which clear
our debt maturities until 2025. The ongoing proactive management of
our liquidity position, including these completed and pending
transactions, together with Brookdale's solid improvement in
operating results, support our continued strong liquidity
position," said Dawn Kussow,
Brookdale's Executive Vice President and CFO. "We appreciate Fannie
Mae and JLL for their ongoing partnership on this financing, and
Capital One for their partnership on the amended credit
agreement."
Recently Completed Financing Transactions
In
December 2023, Brookdale obtained a
$180 million loan under its Master
Credit Facility Agreement, dated as of August 31, 2017. The financing with Jones Lang
LaSalle Multifamily, LLC was obtained pursuant to Fannie Mae's DUS
Program. The principal amount of the new debt is secured by
non-recourse first mortgages on 47 communities, which also continue
to secure approximately $580 million
of additional outstanding mortgages with a later maturity. The
$180 million loan bears interest at a
fixed rate of 5.97% and matures in 2031. The facility includes
certain "borrow-up" provisions, which the Company expects will
enable it to obtain additional funding in 2024 under the loan based
on the performance of the underlying communities. At the closing,
the Company repaid $260 million of
debt under the facility, which was scheduled to mature in 2024,
using proceeds from the $180 million
loan and cash on hand.
In December 2023, the Company also
amended its revolving credit agreement with Capital One, National
Association, as administrative agent and lender and the other
lenders from time to time parties thereto. The amended agreement
provides an expanded commitment of up to $100 million which can be drawn in cash or as
letters of credit and represents a $20
million increase from the previously existing commitment.
Available capacity under the facility will vary from time to time
based upon certain calculations related to the appraised value and
performance of the communities securing the credit facility and the
variable interest rate of the credit facility. The amended credit
facility matures in January 2027, and
the Company has options to extend the facility to March 2028 and March
2029 subject to the satisfaction of certain conditions.
Amounts drawn under the facility bear interest at SOFR plus an
applicable margin. The applicable margin varies based on the
percentage of the total commitment drawn, with a 2.50% margin at
utilization equal to or lower than 50% and a 3.00% margin at
utilization greater than 50%.
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living
Inc. is the nation's premier operator of senior living communities.
The Company is committed to its mission of enriching the lives of
the people it serves with compassion, respect, excellence, and
integrity. The Company, through its affiliates, operates
independent living, assisted living, memory care, and continuing
care retirement communities. Through its comprehensive network,
Brookdale helps to provide seniors with care, connection, and
services in an environment that feels like home. The Company's
expertise in healthcare, hospitality, and real estate provides
residents with opportunities to improve wellness, pursue passions,
make new friends, and stay connected with loved ones. Brookdale,
through its affiliates, operates and manages 672 communities in 41
states as of September 30, 2023, with the ability to serve
more than 60,000 residents. Brookdale's stock trades on the New
York Stock Exchange under the ticker symbol BKD. For more
information, visit brookdale.com or connect with Brookdale on
Facebook or YouTube.
SAFE HARBOR
Certain statements in this press release
may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to various risks and
uncertainties and include all statements that are not historical
statements of fact and those regarding the Company's intent, belief
or expectations. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "could," "would," "potential," "intend,"
"expect," "endeavor," "seek," "anticipate," "estimate," "believe,"
"project," "predict," "continue," "plan," "target," or other
similar words or expressions, and include statements regarding
pending transactions and other future events. These forward-looking
statements are based on certain assumptions and expectations, and
the Company's ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Although the
Company believes that expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no
assurance that its assumptions or expectations will be attained and
actual results and performance could differ materially from those
projected. Factors which could have a material adverse effect on
the Company's operations and future prospects or which could cause
events or circumstances to differ from the forward-looking
statements include, but are not limited to, the Company's ability
to complete pending or expected transactions on agreed upon terms
or at all, including in respect of the satisfaction of closing
conditions, and uncertainties as to the timing of closing;
disruptions in the financial markets or decreases in the appraised
values or performance of the Company's communities that affect the
Company's ability to obtain financing or extend or refinance debt
as it matures and the Company's financing costs; the Company's
ability to obtain additional capital on terms acceptable to it; as
well as other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission, including
those set forth in the Company's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. When considering forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in such SEC filings. Readers are cautioned
not to place undue reliance on any of these forward-looking
statements, which reflect management's views as of the date of this
press release. The Company cannot guarantee future results, levels
of activity, performance or achievements, and, except as required
by law, it expressly disclaims any obligation to release publicly
any updates or revisions to any forward-looking statements
contained in this press release to reflect any change in the
Company's expectations with regard thereto or change in events,
conditions, or circumstances on which any statement is based.
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SOURCE Brookdale Senior Living Inc.