A skilled nursing portfolio sold in Oklahoma thanks in part to acquisition financing secured by JD Stettin of Carnegie Capital. Totaling 430 beds, these facilities are located in southern Oklahoma in Marshall, Bryan and Love counties. They were operating well, but there is some upside in operations and census. The existing operator executed a purchase option to take over the portfolio at a price of $13.5 million, or $31,400 per bed.
Mr. Stettin secured both a first mortgage and mezzanine financing, with a blended rate of 7.3%, to fund the deal. The senior debt came with an interest rate of 5.75% over LIBOR with a 1.00% floor, while the mezzanine debt had a rate of 15.00% over LIBOR with a 1.00% floor. Both lenders were private bridge funds.
