Bankruptcy breeds opportunity
After an exceptionally busy month for Texas M&A (details included in the upcoming issue of The SeniorCare Investor), we have one more. Highland Capital Management’s Cornerstone Healthcare Group was the stalking horse and ultimate buyer of a bankrupt not-for-profit senior care company with two senior living communities in Texas and one in Tennessee. The target, UGHS Senior Living, was actually profitable but filed for Chapter 11 bankruptcy protection in November 2015 after its not-for-profit parent University General Health System filed for bankruptcy protection in February 2015 and its creditors were seeking repayment through various UGHS subsidiaries, including UGHS Senior Living. The... Read More »Breaking barriers
If skilled nursing facilities sold on average at an all-time record high price of $85,900 per bed, then how did the average 2015 cap rate hold up to history? Well, according to the 21st Edition of The Senior Care Acquisition Report, the average cap rate for skilled nursing transactions dropped 20 basis points to 12.2%, which is the second lowest average ever (12.1% was the lowest ever at the last market peak in 2007). Traditionally, the average skilled nursing cap rate has reliably ranged between 12.0% and 13.5% for most of the past 20 years, regardless of swings in interest rates and changes in financial markets. But with two consecutive years of sub-12.5% average cap rates (2014 was... Read More »Partner in post-acute
To finance its recent acquisition of Spectrum Professional Services, an investor group led by healthcare M&A investor Beecken Petty O’Keefe and Company recently received a $110.5 million senior secured credit facility arranged by Capital One Healthcare, which served as administrative agent and lead book-runner. Spectrum is a rehabilitative therapy management consulting business catering its services to post-acute care, skilled nursing and assisted/independent living providers. It was acquired in December 2015 by a joint venture headed by Beecken Petty O’Keefe and including Sunrise Senior Living plus existing investors at Spectrum. Cain Brothers had served as Spectrum’s exclusive... Read More »
Skilled Nursing Facilities Are Not Prisons
Apparently, The New York Times thinks people are “held” in nursing facilities, at least in South Dakota. I don’t know if any of you caught yesterday’s front-page headline in The New York Times, but it really got me mad. The headline was, “Thousands Are Held Wrongly In Nursing Homes.” Held? Are they talking about prisons? I know no one wants to be there, but they are not “held.” The article was about South Dakota, where apparently people who should not be in a skilled nursing setting are there because there are no other options. At least none that will be paid for by someone else. One resident told investigators that when friends came to take him out for a ride, they had to sign... Read More »Schedule a demo
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