Subsidiaries of Orion Care Services received a $100 million term loan with an accordion feature to refinance a basket of 18 skilled nursing facilities with embedded equity and to allow for $20 million of excess cash to fund future acquisitions and development. The facilities, all located in Ohio and Michigan, totaled 1,257 beds. The loan, valued at $79,554 per bed, came with a seven-year term and 25-year amortization. Plus, a rate of LIBOR plus 250 basis points was swapped out on 70% of the loan to a 4.30% fixed rate. The five banks in the syndicate approved a 75% loan-to-value, but the loan ended up at 70% due to strong appraisal values as a result of improved property performance. Orion Care Services provided a corporate parent guarantee on the syndication, and brought in Frank Conway of the Fifth Third Cleveland office as the lead arranger. Joe Resor of Resor Financial Group was the advisor on the deal.
