Following the news earlier this week of a major leadership shakeup that ushered in a new CEO, it was announced that Holiday Retirement has secured a $1.27 billion refinancing.
Walker & Dunlop, Inc. (NYSE: WD) originated the refinancing for the nation’s largest independent living provider. It was the largest transaction closed in Walker & Dunlop history.
The 7-year, Freddie Mac, adjustable rate loans are secured by a 78-property portfolio of independent living facilities located across 30 states. Walker & Dunlop Vice Presidents Laura Beaton and Russell Dey headed the team that structured and closed the transaction in 47 days.
“Closing a transaction of this size in such a short time period required exceptional teamwork by Walker & Dunlop, Holiday Retirement, and Freddie Mac,” Walker & Dunlop Chairman and CEO Willy Walker stated in a press release issued Thursday. “This portfolio is by far the largest financing Walker & Dunlop has ever completed, yet our team provided the same certainty of execution and processing speed as we do on much smaller transactions.”
The Holiday transaction is the second “mega financing” that Walker & Dunlop completed in 2015, Walker also noted. The other was a $670 million transaction that was announced in April, which previously held the record for largest financing in the company’s 77-year history.
That transaction involved real estate investment trust New Senior Investment Group (NYSE: SNR), which secured seven-year adjustable rate mortgages through the Freddie Mac Seller/Servicer Program. This transaction also was executed rapidly, completed 41 days after engagement.
The proceeds of that financing went in part toward SNR’s acquisition of 17 properties from affiliates of Hawthorn Retirement Group, for $435 million. The portfolio consists of 2,082 private pay units in 10 states, operated by Holiday.
The news of the Holiday refinancing comes after the Lake Oswego, Oregon-based company announced on Tuesday the resignation of its CEO, Kai Hsiao, due to personal health matters. Hsiao has assumed the role of vice chairman, and Lilly Donohue assumed the role of Holiday’s new CEO.
Also this week, it was announced that Shamim Wu, Holiday’s executive vice president of sales, will be appointed president and COO of Silverado Care, effective Jan. 18.
Holiday Retirement is the second-largest operator of senior housing in the United States, managing more than 300 properties across the nation.
Holiday Retirement declined Senior Housing News’ request for comment.