Brookdale Senior Living Inc. (NYSE:BKD) recently announced it has obtained a 7-year, $437.8 million first mortgage credit facility from Oak Grove Capital through the Fannie Mae Delegated Underwriting and Servicing program.
Three quarters of the facility bears a fixed interest rate of 4.25%, with the remaining 25% at a variable rate of 30 day LIBOR plus a margin of 182 basis points. The facility comes with provisions for certain substitutions and “borrowing up,” and has capacity for expansion; the current amount is based on a 55% loan-to-value ratio applied to the appraised value of the secured properties.
Additionally, in conjunction with obtaining the credit facility, Brookdale repaid $445.2 million of mortgage debt scheduled to mature in February and August 2012.
“We have now eliminated all of the Company’s 2012 mortgage debt maturities (other than periodic, scheduled principal amortization) and a portion of the Company’s 2013 maturities,” says Bill Sheriff, Brookdale’s CEO. “Since the beginning of the year, we have repaid $845.5 million of debt and obtained new financings of $782.0 million, for a net reduction of $63.4 million while also unencumbering assets that can be used to add borrowing capacity under the Company’s secured line of credit.”
Written by Alyssa Gerace