Capital Senior Living Corporation (NYSE:CSU), one of the country’s largest operators of senior living communities, recently announced that its Board of Directors has authorized a stock repurchase program of up to $10 million of its common stock. The stock repurchase program was a recommendation from the Special Committee formed to explore strategic alternatives for the company that was formed in the spring of 2008. The company carries debt affiliated with its 25 properties and those mortgage loans have an average rate of 6.1% and the company has one maturing loan in 2009 for a Midwestern property currently planned to be sold.
“Our goal is to maximize stockholder value,” said Lawrence A. Cohen, Chief Executive Officer. “Given the current market conditions, we believe this stock repurchase program is a prudent use of our capital and demonstrates our confidence in the long-term value of Capital Senior Living. We are profitable, generate positive cash flow and currently have the cash available to fund this program.”
Based upon the release, one could expect that proceeds from the sale of this property would be used as the means to fund the stock repurchase.
For the full press release, click here.