Emeritus Corporation (NYSE: ESC), a national provider of assisted living and related services to senior citizens, announced today that it has closed on the balance of a previously announced purchase of 29 communities from Health Care REIT, Inc. (NYSE: HCN) and affiliates. The communities were formerly operated by Emeritus under long-term leases. The initial closing was completed on June 30, 2008, and consisted of 19 communities with a capacity of 1,564 units. This closing consists of 10 communities with a capacity of 693 units for a purchase price of $77.2 million, excluding financing and closing costs. “Despite the current turmoil in the financial markets, Emeritus has closed this transaction on time and with favorable financing,” stated Granger Cobb, President and Co-Chief Executive Officer.
Financing for the 10 facilities consists of $56.4 million of mortgage debt financing, of which $29.0 million is at a weighted average fixed rate of 6.654% and was originated by KeyBank through a Freddie Mac credit facility, and $27.4 million of variable rate debt provided by KeyBank at the one-month LIBOR rate plus 3.0%. The Freddie Mac credit facility has a term of 10 years. The KeyBank loan has a term of three years and may be prepaid without penalty.
For more information on Emeritus’s purchase, click here.