The most-read Senior Housing News stories from the past week both involved COOs.
Last Monday, readers were eager to hear more about why Chicago-based Senior Lifestyle decided to appoint co-COOs. A day later, the hot story was that Labeed Diab is exiting the COO post at Brentwood, Tennessee-based Brookdale Senior Living (NYSE: BKD).
When Brookdale hired Diab in the fall of 2015, investors were excited, perhaps owing to Diab’s pedigree as a Walmart executive. Shares jumped 15% on the news of his appointment. Fast-forward two years, and BKD shares are trading at around $10.50, about half of their fall 2015 value, while a long-rumored sale of the company or its real estate assets appears to have stalled.
Given the situation, it’s not surprising that executives—not just Diab—are leaving the company. He has not cited Brookdale’s troubles as a reason for his departure, but Senior Lifestyle’s co-COO Jim Pusateri left BKD for his new post in Chicago. Senior Lifestyle’s new chief clinical officer also came from Brookdale.
Most Read Stories (Oct. 13-Oct. 20)
News of Note
Restructuring in the UK: The largest care home operator in the United Kingdom, Four Seasons Health Care, is about to start restructuring in an attempt to ease its burden of debt.
“For the past 18 months we have been very clear that a capital restructuring is needed to ensure the long- term stability of the business and allow it to continue to build on its strong operational turnaround,” Four Seasons Chairman Robbie Barr said in announcing the plan on Oct. 17.
The plan includes an equity injection from owner Terra Firma and a proposed debt refinancing.
$2B Credit Facility: Irvine, California-based HCP Inc. (NYSE: HCP) has closed on a $2 billion unsecured revolving credit facility, the real estate investment trust announced Oct. 19. The facility reduced the REIT’s funded interest cost for committed loans by 5 basis points. It has a maturity date of Oct. 19, 2021.
“We are extremely pleased with the strong support from our banking partners with 100% continued participation from our top tier lenders and commitments from 23 financial institutions exceeding $3 billion,” stated Peter Scott, executive vice president and CFO, in a press release. “Combined with no material debt maturities until 2019, this transaction further enhances our liquidity position and strengthens our balance sheet.”
The facility bears interest annually at LIBOR plus 100 basis points; there is a facility fee of 20 basis points. It includes two six-month extension options and the ability to increase the commitments by an aggregate amount of $750 million.
Written by Tim Mullaney