Brookdale Refinances Credit Facility Assets with Freddie Mac Mortgage Loans

Rhea-AI Summary

Brookdale Senior Living Inc. (NYSE: BKD) has completed a financing transaction, securing $267 million in non-recourse mortgage debt as of August 31, 2020. This financing includes $191 million in fixed-rate notes at 2.89% and $76 million in adjustable-rate notes starting at 2.64%. The transaction enabled Brookdale to repay its $250 million revolving credit facility without penalties. This refinancing enhances the company's financial flexibility, maintains liquidity, and extends loan maturities, securing mortgages against 16 senior living communities.

Positive

• Secured $267 million in non-recourse mortgage debt, enhancing financial flexibility.
• Successfully refinanced credit facility, reducing interest rates to an average of 2.82%.
• No termination fees paid while repaying the credit facility.

Negative

• None.

NASHVILLE, Tenn., Sept. 2, 2020 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or "the Company") announced that it recently completed a significant financing transaction. On August 31, 2020, Brookdale secured $267 million of non-recourse mortgage debt and terminated its $250 million revolving credit facility.

The Company obtained $267 million of ten-year mortgage financing from Capital One, National Association pursuant to Freddie Mac's Capital Markets Execution Program. The financing includes $191 million of 2.89 percent fixed rate notes and $76 million of adjustable rate notes with an initial rate of 2.64 percent. The first priority mortgages were secured by 16 senior living communities, most of which had previously secured Brookdale's revolving credit facility. At the closing, the Company repaid the outstanding principal amount and cash collateralized letters of credit outstanding on the credit facility without payment of any termination fee or penalty.

Steven Swain, Brookdale's Executive Vice President and Chief Financial Officer, said, "We are pleased to continue enhancing our financial flexibility. We have now executed on our previously disclosed plan to refinance the assets securing our credit facility with non-recourse, long-term mortgages at an attractive initial weighted average loan rate of 2.82 percent. After refinancing the credit facility assets, this transaction maintains our liquidity level while extending maturities. We would like to thank Capital One and Freddie Mac for their continued partnership."

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 and manages independent living, assisted living, memory care, and continuing care retirement communities, with 737 communities in 44 states and the ability to serve approximately 65,000 residents as of June 30, 2020. The Company also offers a range of home health, hospice, and outpatient therapy services to over 17,000 patients as of that date. 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.

FAQ

What did Brookdale Senior Living announce on September 2, 2020?

Brookdale Senior Living announced the completion of a significant financing transaction, securing $267 million in non-recourse mortgage debt.

What is the interest rate for the mortgage financing secured by Brookdale?

Brookdale secured $191 million in fixed-rate notes at 2.89% and $76 million in adjustable-rate notes with an initial rate of 2.64%.

How does the new financing affect Brookdale's credit facility?

Brookdale repaid its $250 million revolving credit facility without penalties, enhancing its financial flexibility.

What are the benefits of Brookdale's refinancing transaction?

The refinancing transaction reduces interest rates, maintains liquidity, and extends loan maturities for Brookdale.

Which communities were secured under Brookdale's refinancing transaction?

The transaction secured first priority mortgages against 16 senior living communities.