HCP To Sell 15 Million Shares of Stock
HCP (NYSE: HCP) is selling 15 million shares of its common stock. The stock consists of 2 million shares offered directly by the company and 13 million shares offered on a forward basis in connection with a forward sale agreement, at a price of $28.90 per share. The forward buyer, BofA Merrill Lynch, also granted underwriters a 30-day option to purchase an additional 2,250,000 shares of common stock.
BofA Merrill Lynch is the acting as lead book-runner and Citigroup, RBC Capital Markets and UBS Investment Bank are acting as additional book-runners for this offering. HCP intends to use proceeds to fund some of its pending acquisitions and development activities, with any remaining proceeds to be used for general corporate purposes, including repayment of its outstanding debt.
Brookdale Completes Financing Transactions; Extends Maturities and Lowers Credit Facility Borrowing Costs
Brentwood, Tennessee-based Brookdale Senior Living (NYSE: BKD) announced the Company the completion of two significant financing transactions.
Brookdale entered into an amended and restated credit agreement with lenders led by Capital One, National Association as lead arranger and sole book runner. The amended agreement replaced the Company’s former credit agreement and extended the maturity date from January 3, 2020 to January 3, 2024. The amended credit agreement provides commitments for a $250 million revolving credit facility with a $60 million sublimit for letters of credit and a $50 million swingline feature. Benefits from the new credit facility include a lower variable rate margin over LIBOR, a small expansion of the letter of credit sublimit, and a slightly more flexible fixed charge coverage covenant.
Participating lenders include Wells Fargo Bank, PNC Bank, Morgan Stanley Senior Funding, Bank of America, Goldman Sachs, JPMorgan Chase Bank, and First Tennessee Bank National Association. The revolving credit facility is currently secured by first priority mortgages on 15 communities and negative pledges on two communities, and allows for both the removal and addition of collateral.
Brookdale also obtained $327 million of mortgage financing from Berkadia Commercial Mortgage in a Freddie Mac Structured Pool Transaction. The non-recourse mortgage financing has a ten-year term and is secured by first priority mortgages on 28 senior living communities, most of which had collateralized the former credit facility or other loans with near-term maturity dates. Approximately 65% of the principal bears interest at a fixed rate, with the remainder at a variable rate. The mortgage financing allows for certain asset substitutions and partial releases.
CareWorx, Fully Managed Merge
CareWorx Corporation, a global managed service provider in Senior Care based in Ottawa, Ontario, merged with Fully Managed Technology, Canadian MSP and cloud service provider headquartered in Vancouver, British Columbia. The parent company will be known as CareWorx Fully Managed with 270 employees in three lines of business (divisions): Managed Services (Fully Managed), Enterprise Service Management (MSPWorx), and Senior Care (CareWorx).
Lancaster Pollard Secures $36 Million Construction Financing Package For California Community
Lancaster Pollard Senior Managing Director Jason Dopoulos assisted with the financing of a new facility for Park View Estates in Fountain Valley, California. The $36 million transaction – under the FHA Sec. 232 program – will provide capital for the construction, which aims to be completed in 2020.
Developed by Welbrook Senior Living and under the ownership of Oregon-based Sunshine Retirement Living, the new building will be located approximately 35 miles southeast of Los Angeles, next to Fountain Valley Regional Hospital. The facility will have 106 assisted living units and 39 memory care units.
HFF Arranges $21 Million Financing Package For Denver Area Senior Living Community
HFF arranged $21.4 million in financing for The Avenues Crofton Park, a 90-unit, 55+ age-restricted independent living community in Broomfield, Colorado. The HFF team worked exclusively on behalf of The Avenues Crofton Park, LLC to secure 10-year, fixed-rate financing through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF.
The HFF team representing the borrower included director Leon McBroom.
IDB Bank Facilitates $11.8 Million Loan For West Palm Beach Assisted Living Facility
Israel Discount Bank of New York (IDB Bank) facilitated an $11.8 million loan for Gold Standard of Care to renovate Colonial Assisted Living, an assisted living community in West Palm Beach, Florida. IDB Bank Senior Vice President, Healthcare Lending Lisa Silvers structured the deal, which includes a future $2 million advance upon completion and stabilization. Gold Standard of Care is reducing the number of units from 117 to 96, with units being consolidated to create larger units.
KeyBank Arranges $10.8 Million Loan For Affordable Senior Housing Project
KeyBank Community Development Lending & Investment (CDLI) provided a $10.8 million construction loan to support the Jason Gwilt Memorial Senior Apartments, a converted public school in Verona, New York, that will make 50 units of affordable seniors housing and a senior center available to the community.
Joseph Eicheldinger and Gregory Kiger on KeyBank’s CDLI team arranged the financing.
Knapp Group Brokers $3.6 Million Pennsylvania CCRC Sale
The Knapp Group of Marcus & Millichap successfully brokered the $3.6 million cash sale of a 58-unit Personal Care Home community in a suburb 15 minutes from downtown Pittsburgh. Knapp Group was able to unearth a motivated buyer who had experience in value-add projects in western Pennsylvania.
Joe Knapp and Jim Knapp of the Detroit office worked in tandem with Robert Villeneuve of the Washington, D.C. office to successfully market and complete the sale.
Written by Chuck Sudo
Companies featured in this article:
BofA Merrill Lynch, Brookdale Senior Living, CareWorx, CareWorx Fully Managed, Fully Managed, HCP, HFF, KeyBank Community Development Lending & Investment, Lancaster Pollard, RBC Capital Markets, Sunshine Retirement Living, The Knapp Group of Marcus & Millichap, UBS Investment Bank, Welbrook Senior Living