NASHVILLE, Tenn., Dec. 21, 2021 /PRNewswire/ -- Brookdale Senior
Living Inc. (NYSE: BKD) ("Brookdale" or "the Company") announced
today that it completed another significant financing transaction
totaling $100 million. In addition,
the Company prepaid substantially all of its remaining 2022
maturities, which will save several million dollars in annual
interest expense.
On December 20, 2021, the Company
obtained $100 million of mortgage
debt from Capital One, National Association. CBRE Capital Markets
acted as financial advisor to Brookdale in securing the loan. The
debt has an initial three-year term and two one-year renewal
options, exercisable subject to certain performance criteria. The
debt is lower-leverage, carries a variable interest rate of 2.15%
over SOFR, and is interest only for the first three years. The
first priority, non-recourse mortgages were secured by 11 senior
living communities, which had previously secured Fannie Mae loans
of $143 million maturing in first
quarter 2022.
Steven Swain, Brookdale's
Executive Vice President and Chief Financial Officer,
said, "We've taken multiple steps in the last two quarters to
enhance liquidity. We are pleased to have refinanced our first
quarter 2022 maturities. In addition, by proactively prepaying
substantially all remaining 2022 maturities early, we will save
several million dollars of negative carry. In 2022, we expect to
refinance these newly unencumbered communities with lower-leverage
mortgage debt."
About Brookdale Senior Living
Brookdale Senior Living Inc. is the nation's premier operator of
senior living communities. The Company is committed to its mission
of enriching the lives of the people it serves with compassion,
respect, excellence and integrity. The Company operates independent
living, assisted living, and Alzheimer's and dementia care
communities. Through its comprehensive network, Brookdale helps to
provide seniors with care and services in an environment that feels
like home. The Company's expertise in healthcare, hospitality and
real estate provides residents with opportunities to improve
wellness, pursue passions and stay connected with friends and loved
ones. Brookdale operates and manages 682 communities in 41 states
as of September 30, 2021, with the
ability to serve more than 60,000 residents. Brookdale's stock
trades on the New York Stock Exchange under the ticker symbol BKD.
For more information, visit brookdale.com or connect with Brookdale
on Facebook or Twitter
Safe Harbor
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to various risks and uncertainties and
include all statements regarding the Company's intent, belief or
expectations regarding its financing plans. These forward-looking
statements are based on certain assumptions and expectations, and
the Company's ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Although the
Company believes that expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no
assurance that its assumptions or expectations will be attained and
actual results and performance could differ materially from those
projected. Factors which could cause events or circumstances to
differ from the forward-looking statements include, but are not
limited to, the impacts of the COVID-19 pandemic on the nation's
economy and debt and equity markets, the Company's ability to
complete financings and refinancings of various assets, and the
Company's ability to generate sufficient cash flow to cover
required interest and lease payments and to satisfy financial and
other covenants in its debt and lease documents; events which
adversely affect the ability of seniors to afford resident fees,
including downturns in the economy, housing market, consumer
confidence, or the equity markets and unemployment among resident
family members; the effects of lower industry occupancy (including
due to the pandemic) and increased competition; terminations of the
Company's resident agreements and vacancies in the living spaces it
leases, including due to the pandemic; delays in obtaining
regulatory approvals; disruptions in the financial markets or
decreases in the appraised values, performance, or occupancy of the
Company's communities that affect the Company's ability to obtain
financing or extend or refinance debt as it matures; the effect of
the Company's non-compliance with any of its debt or lease
agreements (including the financial covenants contained therein);
the phasing out of LIBOR which may increase the costs of the
Company's debt obligations; environmental contamination at any of
the Company's communities; failure to comply with existing
environmental laws; an adverse determination or resolution of
complaints filed against the Company, including class action and
stockholder derivative complaints; the cost and difficulty of
complying with increasing and evolving regulation; costs to respond
to, and adverse determinations resulting from, government reviews,
audits and investigations; unanticipated costs to comply with
legislative or regulatory developments; the risks associated with
current global economic conditions and general economic factors
such as inflation, the consumer price index, commodity costs, fuel
and other energy costs, costs of salaries, wages, benefits, and
insurance, interest rates, and tax rates; the impact of seasonal
contagious illness or an outbreak of COVID-19 or other contagious
disease in the markets in which the Company operates; as well as
other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission, including those set
forth under "Item 1A. Risk Factors" contained in the Company's
Annual Report on Form 10-K for the year ended December 31, 2020 and Part II, "Item 1A. Risk
Factors" and elsewhere in Quarterly Reports on Form 10-Q. When
considering forward-looking statements, you should keep in mind the
risk factors and other cautionary statements in such SEC filings.
Readers are cautioned not to place undue reliance on any of these
forward-looking statements, which reflect management's views as of
the date of this press release. The Company cannot guarantee future
results, levels of activity, performance or achievements, and,
except as required by law, it expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained in this press release to reflect any change in
the Company's expectations with regard thereto or change in events,
conditions, or circumstances on which any statement is based.
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SOURCE Brookdale Senior Living Inc.