The team at People’s United Bank has been very busy in the last month closing acquisition financings, arranging credit lines for hospital clients and processing PPP loans for its customers. In addition to adjusting to new working environments, this meant a lot of late nights and weekend work for the People’s teams.
First, the Healthcare Finance team closed two small loans to support Pinnacle Group’s acquisition of two skilled nursing facilities in Maine, with Claudia Gordon serving as relationship manager on the transaction. The acquisition included a 64-bed facility in North Berwick and an 86-bed facility in Sanford, joining Pinnacle’s 114-bed senior care facility in Canton, Maine that it purchased in 2015 for $1.8 million, or $15,800 per bed.
A local family was the seller of the North Berwick property, which was 92% occupied, while the Sanford facility, at 86% occupancy, was previously owned by a third-party, Sanford Health Care Associates. Combined, the purchase price came to $4.05 million, with $2.2 million allocated to the North Berwick facility and $1.85 million to the Sanford facility. People’s United Bank secured a $2 million and a $1.7 million loan, respectively, to fund the deals. Both featured five-year terms and 30-year amortizations.
Next, the bank has worked to secure new or increased lines of credit for hospitals that have had to drain their cash and PP&E reserves to deal with the current crisis. Customers in need of, and asking for, payment deferrals are also being processed for up to 90 days.
Finally, the bank has already received about 9,000 applications for those PPP loans, which began funding on April 10, generating $2 billion in volume and putting them in the top-10 nationwide in terms of number of applications. In addition, for its healthcare customers, People’s reached out to every one of them within five days of the stay-at-home order in mid-March to let them know that the bank is open for business, and has so far processed 41 PPP loans for over $52 million, with the first loan to one of its Massachusetts healthcare clients already getting funded. All of this required the bank to reallocate over 250 people from their traditional roles to help get these requests manually processed as quickly as possible. Well done to the whole team.
