CIT Group Inc. announced its involvement in New Generation Health LLC’s takeover of 19 senior care facilities previously operated by Genesis HealthCare, leading the way on a nearly $100 million financing package. The facilities are located in California, Washington and Nevada and include skilled nursing, assisted living and behavioral health assets.
New Generation assumed operational responsibility of all 19 facilities, but also acquired the real estate at seven of the facilities, for a total purchase price of $79 million. Genesis will also retain an indirect 50% interest in the portfolio and provide administrative and back office services, pursuant to administrative support agreements, as well as therapy services. Genesis plans to use the net proceeds to repay indebtedness and fund the indirect investment.
CIT’s Healthcare Finance group served as lead arranger of $93.7 million in financing to support the acquisition, of which a $74.7 million senior secured credit facility was allocated to the real estate acquisition and a $19 million asset-based revolving credit facility was provided for working capital costs at the other 12 facilities. CIT will also provide capital market services and a variety of deposit account and cash management services.
