Annual Interest Expense Reduced by ~$2.5 million with majority of maturities through first half of 2020 refinanced at lower rates
NASHVILLE, Tenn., Sept. 6, 2019 /PRNewswire/ -- Brookdale Senior Living Inc. (BKD) announced today that the Company recently completed significant financing transactions, which will extend maturities and lower borrowing cost for the majority of company maturities for the first half of 2020.
On August 29, 2019, the Company obtained $160 million of mortgage financing from CBRE in a Fannie Mae Master Credit Facility. The non-recourse mortgage financing has a ten-year term and is secured by first priority mortgages on five senior living communities, most of which had secured loans with near-term maturity dates. Approximately 75% of the principal bears interest at a fixed rate of 3.35 percent, with the remainder at a variable rate. The loan was placed at a 60% loan-to-value leverage point and allows for asset substitutions, borrow-ups and partial releases.
"In keeping with our strategic objectives, we are pleased to have refinanced the majority of our maturities through the first half of 2020 at very favorable rates," commented Steven Swain, Brookdale's Executive Vice President and Chief Financial Officer. "We replaced mortgage debt bearing a blended rate of 5.5 percent with new debt at 3.6 percent, and continue to enhance shareholder value by reducing our annual interest expense by approximately $2.5 million."
This recent transaction is in addition to the June 28, 2019 Company refinance of a $16 million construction loan from PNC Real Estate with a $22 million fixed rate loan at 3.7 percent and a seven-year term. PNC Real Estate served as the Delegated Underwriting and Servicing lender for the Fannie Mae loan, which was also placed at a 60% loan-to-value leverage point.
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 centers, with 809 communities in 45 states and the ability to serve approximately 77,000 residents as of June 30, 2019. The Company also offers a range of home health, hospice and outpatient therapy services to over 20,000 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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