The Healthcare Lending group of Congressional Bank recently announced that it closed three separate transactions (with five loans) totaling $11.6 million, which all helped facilitate acquisitions for the borrowers. First, Congressional provided a $3 million bridge-to-HUD loan and a $1.5 million revolving line of credit, both with three year terms, to fund the purchase and ongoing capital needs of a 107-bed skilled nursing facility in New Bedford, Massachusetts. The buyer, a regional owner/operator, paid $3.21 million for the 40-year old facility, which was losing money and was 82% occupied.

Second, Birchwood Health Care Properties received a $2.6 million bridge-to-HUD loan and a $500,000 revolving line of credit (both with 35-month terms) from Congressional to fund its acquisition of a 67-bed skilled nursing/assisted living facility in Huntington, West Virginia. Built in 1928 but renovated in 2009, this facility was sold when the operator tenant stopped paying rent and filed for bankruptcy. While the census was stable at 90%, it was losing money. Birchwood brought in Providence Health Group to operate.

Finally, Congressional closed a $4 million revolving line of credit with a three-year term to facilitate the acquisition of the operations of a 118-bed skilled nursing facility in Tucson, Arizona. As the borrower would not be able to bill and collect under the old operator provider agreements, the revolver was structured to allow for unbilled Accounts Receivable during the transition process.

HHC Finance expects to take all of these loans to HUD once the terms are up. We expect to hear a lot more from Congressional Bank soon, when the merger with American Bank closes on January 1 and their individual loan capacity rises above $10 million.