Lancaster Pollard recently assisted The Ensign Group in a large $112 million portfolio financing arranged through HUD. The 30- and 35-year term loans were secured by mortgages on seventeen Ensign-owned properties and came with low, fixed interest rates. Ensign will use the loan proceeds to pay down previously drawn amounts on its revolving credit line, and the financing provides the company liquidity on a portion of its owned real estate. The proceeds will also fund future acquisitions and renovations, as well as other working capital needs.
The company’s acquisition appetite seemed to wane slightly towards the end of 2017 (five deals announced in the first six months, versus two in the second half of the year), but this financing should boost activity in 2018.
