Brookdale Announces Beneficial Refinancing Transaction to Address a Significant Portion of 2027 Debt Maturities at a Favorable Rate
Brookdale Senior Living (NYSE: BKD) has completed a significant refinancing transaction, securing a $344.2 million loan through JLL Real Estate Capital under Fannie Mae's DUS Program. The new financing, which matures in January 2032, was used to repay $312.5 million of variable rate debt due September 2027.
The new loan features a fixed interest rate of 6.14%, compared to the previous variable rate of 7.20%, and is interest-only for the first two years. The debt is secured by non-recourse first priority mortgages on 47 communities, which also secure approximately $435 million of additional outstanding mortgages.
Brookdale Senior Living (NYSE: BKD) ha completato un'importante operazione di rifinanziamento, ottenendo un prestito di 344,2 milioni di dollari attraverso JLL Real Estate Capital nell'ambito del Programma DUS di Fannie Mae. Il nuovo finanziamento, che scade a gennaio 2032, è stato utilizzato per rimborsare un debito a tasso variabile di 312,5 milioni di dollari in scadenza settembre 2027.
Il nuovo prestito presenta un tasso di interesse fisso del 6,14%, rispetto all'attuale tasso variabile del 7,20%, ed è a rimborso solo degli interessi per i primi due anni. Il debito è garantito da mutui di primo piano senza ricorso su 47 comunità, che garantiscono anche circa 435 milioni di dollari di mutui aggiuntivi in sospeso.
Brookdale Senior Living (NYSE: BKD) ha completado una transacción de refinanciamiento significativa, asegurando un préstamo de 344.2 millones de dólares a través de JLL Real Estate Capital bajo el Programa DUS de Fannie Mae. El nuevo financiamiento, que vence en enero de 2032, se utilizó para pagar 312.5 millones de dólares de deuda a tasa variable con vencimiento en septiembre de 2027.
El nuevo préstamo cuenta con un tipo de interés fijo del 6.14%, en comparación con el anterior tipo variable del 7.20%, y es solo de intereses durante los primeros dos años. La deuda está asegurada por hipotecas de primer nivel sin recurso sobre 47 comunidades, que también aseguran aproximadamente 435 millones de dólares de hipotecas adicionales pendientes.
브룩데일 시니어 리빙 (NYSE: BKD)은 Fannie Mae의 DUS 프로그램에 따라 JLL 부동산 자본을 통해 3억 4,420만 달러 규모의 중요한 재융자 거래를 완료했습니다. 새로운 자금 조달은 2032년 1월에 만료되며, 2027년 9월에 만료되는 3억 1,250만 달러의 변동 금리 부채를 상환하는 데 사용되었습니다.
새로운 대출은 6.14%의 고정 금리를 특징으로 하며, 이전의 7.20% 변동 금리와 비교됩니다. 첫 두 년 동안은 이자만 지급하는 조건입니다. 이 부채는 47개의 커뮤니티에 대한 비상환 첫 우선 담보로 보장되며, 이는 약 4억 3천5백만 달러의 추가 담보 대출에 대해서도 보장됩니다.
Brookdale Senior Living (NYSE: BKD) a finalisé une transaction de refinancement significative, garantissant un prêt de 344,2 millions de dollars via JLL Real Estate Capital dans le cadre du programme DUS de Fannie Mae. Le nouveau financement, qui arrive à échéance en janvier 2032, a été utilisé pour rembourser 312,5 millions de dollars de dettes à taux variable échues en septembre 2027.
Le nouveau prêt présente un taux d'intérêt fixe de 6,14%, comparé au précédent taux variable de 7,20%, et est uniquement à intérêt pendant les deux premières années. La dette est garantie par des hypothèques prioritaires sans recours sur 47 communautés, qui garantissent également environ 435 millions de dollars d'autres hypothèques en cours.
Brookdale Senior Living (NYSE: BKD) hat eine bedeutende Refinanzierungstransaktion abgeschlossen und 344,2 Millionen Dollar über JLL Real Estate Capital im Rahmen des DUS-Programms von Fannie Mae gesichert. Die neue Finanzierung, die im Januar 2032 fällig wird, wurde verwendet, um 312,5 Millionen Dollar an variabel verzinster Verschuldung, die im September 2027 fällig wird, zurückzuzahlen.
Das neue Darlehen hat einen festen Zinssatz von 6,14%, im Vergleich zum vorherigen variablen Zinssatz von 7,20%, und ist in den ersten zwei Jahren nur zinsbelastend. Die Schuld ist durch vorrangige Hypotheken ohne Rückgriff auf 47 Gemeinschaften gesichert, die auch etwa 435 Millionen Dollar an weiteren ausstehenden Hypotheken absichern.
- Secured lower interest rate (6.14% fixed vs 7.20% variable)
- Extended debt maturity from 2027 to 2032
- Increased liquidity through additional $31.7M in financing ($344.2M new vs $312.5M repaid)
- Interest-only payments for first two years
- Increased total debt burden
- Added mortgages on 47 communities as collateral
Insights
This refinancing transaction represents a strategic financial maneuver that strengthens BKD's debt profile. The
The two-year interest-only period provides enhanced cash flow flexibility, while the non-recourse nature of the mortgages limits BKD's broader financial exposure. The ability to secure favorable terms in the current high-rate environment demonstrates strong lender confidence in Brookdale's operational stability and asset quality.
For investors, this refinancing reduces both interest rate risk and refinancing risk, two critical factors in the senior living sector where stable cash flows are essential. The transaction's timing is particularly strategic, executed well ahead of the 2027 maturity and locked in at a rate that could prove advantageous if interest rates remain elevated.
The securitization of 47 senior living facilities in this refinancing highlights the strong underlying real estate value in BKD's portfolio. The ability to secure Fannie Mae-backed financing through JLL indicates these properties meet strict quality and performance criteria. The combined
The fixed-rate structure at
On December 20, 2024, Brookdale obtained a
The principal amount of the new debt is secured by non-recourse first priority mortgages on 47 communities, which also secure approximately
The new loan bears interest at a fixed rate of
"Demonstrating ongoing proactive management of our balance sheet, we once again completed a beneficial financing transaction to address a future debt maturity at a favorable rate," said Dawn Kussow, Brookdale's Executive Vice President and Chief Financial Officer. "We are pleased to benefit from the advanced refinancing on this facility, and we are grateful to Fannie Mae and JLL for their ongoing partnership."
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 648 communities in 41 states as of September 30, 2024, with the ability to serve approximately 58,000 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 the Company's expected financial and operational results. 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, events which adversely affect the ability of seniors to afford resident fees, including downturns in the economy, housing market, consumer confidence, or the equity markets and unemployment among resident family members; changes in reimbursement rates, methods, or timing under governmental reimbursement programs including the Medicare and Medicaid programs; the effects of senior housing construction and development, lower industry occupancy, and increased competition; conditions of housing markets, regulatory changes, acts of nature, and the effects of climate change in geographic areas where the Company is concentrated; terminations of the Company's resident agreements and vacancies in the living spaces it leases; failure to maintain the security and functionality of the Company's information systems, to prevent a cybersecurity attack or breach, or to comply with applicable privacy and consumer protection laws, including HIPAA; the Company's ability to complete its capital expenditures in accordance with its plans; the Company's ability to identify and pursue development, investment, and acquisition opportunities and its ability to successfully integrate acquisitions; competition for the acquisition of assets; the Company's ability to complete pending or expected disposition, acquisition, or other transactions on agreed upon terms or at all, including in respect of the satisfaction of closing conditions, the risk that regulatory approvals are not obtained or are subject to unanticipated conditions, and uncertainties as to the timing of closing, and the Company's ability to identify and pursue any such opportunities in the future; risks related to the implementation of the Company's strategy, including initiatives undertaken to execute on the Company's strategic priorities and their effect on its results; the impacts of the COVID-19 pandemic, including on the nation's economy and debt and equity markets and the local economies in our markets, and on us and our business, results of operations, cash flow, revenue, expenses, liquidity, and our strategic initiatives, including plans for future growth, which will depend on many factors, some of which cannot be foreseen, including the pace and consistency of recovery from the pandemic and any resurgence or variants of the disease; limits on the Company's ability to use net operating loss carryovers to reduce future tax payments; delays in obtaining regulatory approvals; 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 generate sufficient cash flow to cover required interest, principal, and long-term lease payments and to fund its planned capital projects; the effect of any non-compliance with any of the Company's debt or lease agreements (including the financial or other covenants contained therein), including the risk of lenders or lessors declaring a cross default in the event of the Company's non-compliance with any such agreements and the risk of loss of the Company's property securing leases and indebtedness due to any resulting lease terminations and foreclosure actions; the inability to renew, restructure, or extend leases, or exercise purchase options at or prior to the end of any existing lease term; the effect of the Company's indebtedness and long-term leases on the Company's liquidity and its ability to operate its business; increases in market interest rates that increase the costs of the Company's debt obligations; the Company's ability to obtain additional capital on terms acceptable to it; departures of key officers and potential disruption caused by changes in management; increased competition for, or a shortage of, associates (including due to general labor market conditions), wage pressures resulting from increased competition, low unemployment levels, minimum wage increases and changes in overtime laws, and union activity; environmental contamination at any of the Company's communities; failure to comply with existing environmental laws; an adverse determination or resolution of complaints filed against the Company, including putative class action complaints, and the frequency and magnitude of legal actions and liability claims that may arise due to COVID-19 or the Company's response efforts; negative publicity with respect to any lawsuits, claims, or other legal or regulatory proceedings; costs to respond to, and adverse determinations resulting from, government inquiries, reviews, audits, and investigations; the cost and difficulty of complying with increasing and evolving regulation, including new disclosure obligations; changes in, or its failure to comply with, employment-related laws and regulations; the risks associated with current global economic conditions and general economic factors on the Company and the Company's business partners such as inflation, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, tax rates, geopolitical tensions or conflicts, and uncertainty surrounding federal elections; the impact of seasonal contagious illness or an outbreak of COVID-19 or other contagious disease in the markets in which the Company operates; actions of activist stockholders, including a proxy contest; 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.
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