The Obligated Group of National Senior Campuses, Inc. (Obligated Group), which consists of five large CCRCs located throughout the Mid-Atlantic and New England, is currently embarking on a $517 million refinancing that will replace existing debt with long-term financing. Truist Financial Corporation announced that it provided a $136 million loan as part of the package.
The communities feature a total of 7,731 independent living, assisted living, memory care and skilled nursing units and are located in New Jersey (Pompton Plains and Tinton Falls), Pennsylvania (Warminster), Massachusetts (Peabody) and Virginia (Springfield). They are owned by the not-for-profit National Senior Campuses, Inc. and operated by Erickson Living.
The Virginia property is the first to receive the new debt, which totals $115 million and will help fund a multi-year, multi-phased repositioning project. The other properties in the Obligated Group will also be able to fund extensive repositioning projects, while also reducing refinancing risk, securing low leverage and improving liquidity metrics.
This deal comes on the heels of another Truist transaction where the bank participated in a bond refinance of a large CCRC in Fort Myers, Florida, the details of which you can find here.