Capital Funding’s closings
Capital Funding Group closed a couple of transactions recently for SNFs up and down the East Coast. Starting in New York, the lender provided a $19.1 million bridge-to-HUD loan for a borrower to acquire a 167-bed skilled nursing facility. The loan covered over 90% of the $20.87 million, or $125,000 per bed, purchase price. Craig Casagrande originated the transaction, which was funded through a combination of senior and mezzanine debt and included a turnaround component based on projected improvements to the facility’s performance. Plus, Chip Woelper originated a $3 million working capital loan for the borrower to finance operations. In a separate transaction, Capital Funding served as sole... Read More »King Cash
When it comes to value, it all comes down to cash flow. For the fourth year in a row, according to the 21st Edition of The Senior Care Acquisition Report, there has been a record level of net operating income per bed purchased in the skilled nursing market. This has been the primary driver of the steady rise in the average price per bed since 2011. At the last market peak in 2007, the average NOI per bed sold was $6,700 and the average price per bed was $55,200. From 2007 until 2015, the average NOI grew to $9,600 per bed, for an increase of 43%, while the average price per bed increased to $85,900, representing a 55% increase. Most nursing facilities have been trying to increase their... Read More »
Five Star and Senior Star… Again
Oh boy, here we go again. Bill and Bob Thomas have sent another letter to shareholders of Five Star Quality Care, of which they own about 3.4 million shares, or 6.8% of the company. As shareholders, they are glad that management realized that they had some valuable assets, the full value of which is not reflected in the share value. It rarely is. But, as we pointed out a few months ago when Five Star sold a few assets for a big price, and a big gain, with seven properties worth more than the market cap of the entire company, they are also subjecting themselves to a big lease payment liability, which will cut into cash flow. As shareholders, this is not making the Thomas brothers happy.... Read More »
Getting Ready For More Acquisitions
The Ensign Group has nearly doubled its bank line of credit to $450 million. The new facility will include a $300 million revolving line of credit as well as a $150 million term loan. In addition, there is a $150 million expansion option. It looks like the company is lining up the dry powder for some more acquisitions. Robinson Humphrey and Wells Fargo Securities arranged the financing. Read More »Schedule a demo
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