CareTrust REIT Completes Mezzanine Loan

Rhea-AI Summary

CareTrust REIT (NASDAQ:CTRE) announced a $15 million secured mezzanine loan to Next Healthcare for acquiring a nine-property skilled nursing portfolio in Virginia, comprising around 1,000 beds. This transaction aims to bolster relationships and aligns with CareTrust's investment philosophy of enhancing superior care outcomes. The loan features a five-year maturity with a 12% annual interest rate and is financed through CareTrust’s $600 million unsecured revolving credit facility.

Positive

• Secured a $15 million mezzanine loan to support a strategic acquisition.
• Invests in a well-aligned partner, Next Healthcare, focusing on quality care.
• Portfolio consists of approximately 1,000 skilled nursing beds, expanding market reach.

Negative

• None.

SAN CLEMENTE, Calif., Dec. 01, 2020 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) announced today that it has extended a $15 million secured mezzanine loan to Next Healthcare, Inc. in connection with Next’s acquisition of a nine-property skilled nursing portfolio in Virginia. The portfolio includes approximately 1,000 skilled nursing beds.

Mark Lamb, CareTrust’s Chief Investment Officer, described the transaction as a “relationship deal,” saying, “We are excited to work with Next Healthcare, owner of one of the most active privately-held skilled nursing owners in the country.” He noted that CareTrust believes that Next’s investment philosophy is closely aligned with its own. “Next shares our commitment to the ideal that providers who focus intently on superior care outcomes are not only deserving of our support, but are those that will most likely thrive in the ever-changing post-acute world.”

The secured mezzanine loan caries a five-year maturity and an annual interest rate of 12%. The loan was funded with proceeds from CareTrust’s $600 million unsecured revolving credit facility.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.

Contact:
CareTrust REIT, Inc.
(949) 542-3130
ir@caretrustreit.com

FAQ

What is the recent loan announced by CareTrust REIT (CTRE)?

CareTrust REIT has extended a $15 million secured mezzanine loan to Next Healthcare for acquiring a skilled nursing portfolio in Virginia.

How many properties are included in the loan deal by CareTrust REIT (CTRE)?

The loan is associated with the acquisition of a nine-property skilled nursing portfolio.

What is the interest rate on the loan provided by CareTrust REIT (CTRE)?

The secured mezzanine loan carries an annual interest rate of 12%.

What is the maturity period for the loan extended by CareTrust REIT (CTRE)?

The loan has a maturity period of five years.

How does CareTrust REIT see its relationship with Next Healthcare?

CareTrust REIT describes the transaction as a 'relationship deal,' emphasizing shared values on care outcomes.