Transactions & Financings: LTC Credit Agreement, $750M Greystone Debt Fund

LTC Announces Extension of Unsecured Credit Facility

California-based LTC Properties, Inc. (NYSE: LTC) recently entered into a second amended and restated unsecured credit agreement to replace the real estate investment trust’s (REIT’s) previous unsecured credit agreement dated Oct. 14, 2014. The credit agreement maintains the $600 million aggregate commitment of the lenders under the previous agreement and offers the opportunity to increase the commitment size of the credit agreement up to a total of $1 billion.

The credit agreement extends the maturity of the credit agreement to June 27, 2022, and offers a one-year extension option at LTC’s discretion, subject to customary conditions. In addition, the credit agreement shrinks the interest rate margins and converts from the payment of unused commitment fees to a facility fee. As of June 27, 2018, LTC had $59 million outstanding under the unsecured revolving credit facility with pricing under the new credit agreement at LIBOR plus 115 basis points and a facility fee of 20 basis points.

Greystone Closes $750 Million Senior Debt Opportunity Fund

Greystone, a New York-based real estate lending, investment and advisory firm, recently closed the $750 million Greystone Senior Debt Opportunity Fund.

The fund is managed by Greystone’s affiliate investment adviser and includes multiple institutional and large public pension fund investors. The 8-year fund invests in debt financing across a variety of commercial real estate properties.

With leverage, the fund expects an investment capacity greater than $2.5 billion for loan products like bridge and mezzanine financing for health care, multifamily, and other commercial properties.

The Greystone Senior Debt Opportunity Fund is managed by Greystone Bridge Lending Fund Manager LLC, an SEC-Registered Investment Advisor. UBS Securities LLC served as global placement advisor, H-A Global served as a placement sub-advisor in Israel, and Clifford Chance acted as counsel to Greystone on the transaction.

Masonic Homes Rebrands as Masonic Communities Kentucky

Louisville, Kentucky-based nonprofit Masonic Homes recently rebranded as Masonic Communities Kentucky.

“Several months ago, we began an extensive undertaking to talk with many of our residents, our employees, and our community partners to hear from them what Masonic Homes really means to them,” Gary Marsh, the company’s CEO, said in a press release. “One word that we kept hearing over and over is the word ‘community.’ It’s certainly fitting for us, since communities bring people and resources together. We are stronger together than on our own.”

Masonic Homes worked with Louisville-based advertising and public relations firm Bandy Carroll Hellige (BCH) to develop the new brand.

Lancaster Pollard Refinances Two Senior Living Communities

Lancaster Pollard recently helped Tealwood Senior Living and its partners refinance one of its senior housing communities, The Legacy of St. Michael in St. Michael, Minnesota.

The $11.7 million refinance via the FHA Sec. 232/223(f) program replaced short-term, floating-rate commercial bank debt with long-term, fixed-rate, non-recourse financing. Quintin Harris led the transaction for Lancaster Pollard.

The firm also recently completed a refinance for Garden Courte Memory Care, an 89-bed community in Olympia, Washington. The existing 10-year Fannie Mae loan was scheduled to mature in June, so Lancaster Pollard worked with ownership and management to arrange a new 12-year Fannie Mae loan that offers permanent fixed-rate, non-recourse financing. Additionally, the community successfully secured $2.6 million for capital improvements that will update the community, which was originally constructed in 1996.

Casey Moore, managing director of agency finance, led this transaction for Lancaster Pollard.

Written by Mary Kate Nelson