Transactions & Financings: PGIM’s $222M Financing for Aegis; Healthpeak Prices $1.45B in Notes

Earlier this month, Aegis Living and its joint venture partner, Blue Moon Capital Partners, acquired 10 assisted living and memory care communities from Healthpeak Properties (NYSE: PEAK) for about $350 million.

The deal was facilitated in part by a $222 million Fannie Mae credit facility arranged by PGIM Real Estate. The 10-year interest-only loan is partially fixed rate and partially floating rate. It will be used to recapitalize the portfolio, while allowing for additional flexibility and future expansions. Trace Wilson, executive director at the firm, originated the loan on the joint venture’s behalf.

Sales

Healthpeak sells North Carolina community for $18M

Healthpeak Properties (NYSE: PEAK) sold Brighton Gardens of Greensboro, an assisted living and memory care community in Greensboro, North Carolina, to a joint venture led by Brookfield Asset Management (NYSE: BAM), Triad Business Journal reports. The sale price was $17.58 million.

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In addition to assisted living and memory care services, the community also offers hospice care and short-term stays.

Financings

HJ Sims closes $30M financing package for New York CCRC

HJ Sims in December closed on a $30.03 million financing package for The Bethel Methodist Home, also known as The Knolls, a CCRC in Valhalla, New York. The campus opened in 2002 under the name Westchester Meadows; Bethel Methodist assumed ownership and management in 2016.

Sims negotiated an early exit from existing debt and replaced it with a taxable bond series which will mature in 10 years. The yield on the bonds was 6.125% and the interest rate on the 35-year tax-exempt series was 4.9%.

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NorthMarq completes $35M refinance for Washington senior housing property

NorthMarq Capital Senior Vice President/Managing Director Stuart Oswald arranged a $35 million refinancing package for Weatherly Inn, a 136-unit senior housing community in Tacoma, Washington offering independent living, assisted living and memory care. NorthMarq secured the financing through its Freddie Mac OPTIGO program, and structured the loan with a 10-year term and 30-year amortization.

Ratings Outlooks

Fitch rates NHI’s unsecured bonds ‘BBB-’

Fitch Ratings assigned a “BBB-” rating on a proposed senior unsecured note offering from National Health Investors (NYSE: NHI). Fitch expects the proceeds from the offering to be used by NHI to existing debt, including a $100 million senior unsecured term loan facility due this year, as well as reduce outstanding borrowings under the REIT’s revolving credit facility. Fitch believes any additional proceeds from the bond could be used for general corporate purposes.

Miscellaneous

Healthpeak Properties announces pricing for $1.45B of notes

Healthpeak Properties announced pricing for up to $1.45 billion of the following securities:

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  • 4.25% senior notes due in 2023 ($300 million)
  • 4.2% senior notes due in 2024 ($350 million)
  • 3.875% senior notes due in 2024 ($800 million)

Healthpeak expects to use the net cash proceeds from closed senior housing dispositions to pay the purchase price, plus accrued interest up to, but excluding, the settlement date, for all securities.


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