Five Star Quality Care, Inc. (NYSE Alternext US: FVE) recently announced that it has purchased seven independent living, assisted living and Alzheimer’s care communities located in North Carolina (four communities) and South Carolina (three communities) for a purchase price of $44 million. Including these seven properties, Five Star currently operates nine senior living communities in North Carolina and 16 communities in South Carolina.
The seven acquired communities were previously owned and operated by affiliates of Sunwest Management, Inc. and have a total of 601 living units and an average occupancy of 70%. A U.S. Bankruptcy Court had previously approved Five Star’s bid to acquire the communities and the transaction closed today. Five Star financed this acquisition with cash on hand and drawings under its recently established UBS credit facility. The interest rate under the UBS credit facility is not expected to exceed LIBOR plus 50 basis points.
Five Star Quality Care, Inc. is a healthcare and senior living services provider that currently operates independent and assisted living facilities, skilled nursing facilities, rehabilitation hospitals, institutional pharmacies and outpatient health rehabilitation clinics. Five Star is headquartered in Newton, MA.