It’s been quite a lucrative relationship between Lancaster Pollard and California-based skilled nursing operator, Plum Healthcare Group. About 18 months ago, Grant Goodman, Jason Dopoulos, Joe Munhall and Elliot Kaple secured $400 million in bridge financing from Credit Suisse on 27 skilled nursing facilities in California owned by Plum. However, that was short-term, corporate-level recourse-based debt, which did not give Plum much capital flexibility. So, upon closing of that transaction, Lancaster Pollard immediately began work on a HUD refinance, and the time has now come.
On behalf of 26 of those facilities, Messrs. Goodman, Dopoulos and Kaple led the way on a $420 million HUD financing, which was funded in three separate tranches over the last five months. The fixed-rate, non-recourse debt came with an all-in rate of 3.8%.
This was also Plum’s first-ever HUD transaction. So, to close such a large financing, for so many facilities and for a new client in just 18 months is quite impressive. In addition, it was the largest portfolio refinance closed by HUD in its fiscal year 2019 and one of the largest ever undertaken by the agency.