Alec Blanc of Monarch Advisors helped finance a couple of Senior Living Investment Brokerage’s latest deals in Texas, which we highlighted last week. Cascades Healthcare, a Provo, Utah-based owner/operator, announced two separate acquisitions for four total skilled nursing facilities in Texas for a combined $26.545 million, or $41,400 per bed. Mr. Blanc secured a $21 million acquisition loan from a national commercial finance company to support the deal. There is also a $3.5 million earn-out feature that brings the loan-to-cost to around 92%. We’re not seeing leverage like that very often these days.
The loan comes with a three-year term and interest only payments for the first two years. And pricing is competitive with other high-leverage, non-recourse borrowing options. Cascades also obtained a $3 million revolving line of credit for working capital. The four facilities had run into census issues early in the process (as had thousands of other facilities across the country), but the lender stayed interested throughout the transaction.
