The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign group of skilled nursing, rehabilitative care services, hospice care and assisted living companies, announced that a group of its real estate holding subsidiaries has placed mortgages on six of the Company’s 27 unencumbered properties to secure a $40 million five-year term loan from GE Capital’s (NYSE: GE) Healthcare Financial Services business. The new loan carries a five-year term, with a combination of LIBOR-based fixed-rate and floating-rate interest provisions that apply over the loan term. After completion of the financing transaction, Ensign has stated that it still has 21 unencumbered facilities in its 73-facility portfolio, and has historically borrowed against its assets at conservative levels to fund new acquisitions.
"With the increasing volume of compelling acquisition opportunities we believe we are seeing, it was a good time to tap some of the unleveraged equity in our 27 unencumbered facilities," said Suzanne Snapper, Ensign’s Chief Financial Officer.
Greg Stapley, Ensign’s Executive Vice President, attributed the company’s ability to secure the loan on attractive terms to Ensign’s strong balance sheet and solid operating history. "We expect to use the proceeds to add more quality assets to our portfolio, to enhance our competitive position in our target markets and to further strengthen our balance sheet," he added.
