Recent Senior Housing & Care Financing Activity: Love Funding, Cain Brothers, Cambridge

Cain Brothers Serves as Placement Agent of $120 Million of Fixed & Variable Rate Bonds

Riverside Health System, based in Virginia, recently opted to restructure its debt portfolio and replace its rated variable bond rates with unrated bonds, while maintaining its existing capital structure, with help from Cain Brothers, who functioned as a placement agent. During the process, RHS also refinanced its fixed rate Series 1998 bonds with unrated bonds purchased directly by commercial banks, allowing the company to significantly lower its fixed rate cost of capital while maintaining the existing proportion of fixed and variable rate debt in its capital structure.

Love Funding Closes $17.5 Million in Loans for Senior Housing & Care Communities

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Love Funding announced on Feb. 2 that it had arranged refinancing of four loans, totaling $17.5 million, for an assortment of assisted living and skilled nursing facilities.

The transactions include Rosemont Assisted Living Communities in Kingwood, Tex. and West Monroe, La.; Olmsted Manor Care in North Olmsted, Ohio; and Jerseyville Nursing & Rehabilitation Center in Jerseyville, Ill. All four loans were secured through the U.S. Department of Housing and Urban Development’s (HUD Section 232/223(a)(7) LEAN loan program.

Thanks to HUD’s efforts at reducing its queue of program applications, now is a good time to obtain financing or refinancing, according to the financing group.

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“Given the combination of record-low rates and HUD’s aggressive efforts to eliminate underwriting queues, now is the time for senior living and skilled nursing facilities to refinance,” said Jonathan Camps, Love Funding’s managing director of production, in a statement.

Brian Robertson and Robyn Cunningham, of Love Funding’s St. Louis office, and Bruce Gerhart and Robert Smallwood of the Cleveland office secured the four loans.

OnShift Secures $3 Million in Series B Funding

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OnShift, a web-based staff scheduling and shift management software provider for the healthcare industry, announced on Feb. 2 that it had closed $3 million in Series B financing in a round led by a client of West Capital Advisors, LLC which included participation from OnShift’s institutional investors Draper Triangle Ventures, Early Stage Partners, and Glengary LLC.

The company achieved a 400% increase in annual revenue in 2011, and this new funding will be used to continue OnShift’s sales and marketing strategies and expand its presence in the healthcare industry.

“OnShift is well positions for tremendous growth, with a strong team, compelling technology, expanding customer base and the right timing,” said Madeleine Ludlow, managing director at West Capital Advisors, in a statement. “We are excited to partner with OnShift and look forward to growing this opportunity in the healthcare market.”

With Medicare and Medicaid cuts forcing senior care providers to trim their margins and efficiently manage labor costs while maintaining a high standard for care quality, OnShift’s services can help providers control labor costs by preventing overtime, managing open shifts, and operating with appropriate staffing levels.

Oxford Finance Provides $1 Million Line of Credit to Skilled Nursing Provider

Oxford Finance LLC, a specialty finance firm that provides senior debt to life sciences and healthcare services companies, announced on Feb. 2 that it closed a $1 million revolving line of credit with Cold Spring Holdings, a rehabilitation and nursing care provider.

Proceeds from the loan are being used to support Cold Spring’s two Texas skilled nursing facilities.

“Oxford is pleased to support the operations of Cold Spring’s two recently acquired skilled nursing facilities,” said Christopher Herr, managing director for Oxford Finance. “Cold Spring’s management team is highly regarded and has many years of experience in the senior care industry.”

Cambridge Arranges $4 Million HUD Loan for Michigan Health Care Center

Cambridge Realty Capital Companies recently arranged a $4.04 million HUD Lean loan to refinance The Pines Health Care Center, a 145-bed skilled nursing home located in Lansing, Mich. Cambridge Realty Capital Ltd. of Illinois, which specializes in FHA-insured HUD Lean loans, underwrote the transaction, a fully-amortized, 24-year term loan with an undisclosed interest rate.