Oxford Finance helped finance the acquisition of four skilled nursing facilities in Texas with a senior credit facility totaling $27.5 million. Cascades Healthcare, an owner/operator of 15 skilled nursing facilities in Utah and Idaho, is the borrower, branching out into the Lone Star State for the first time. The facilities total 647 licensed beds.
We learned of the deal earlier this month when Alec Blanc of Monarch Advisors announced his structuring of the transaction. Making up the credit facility was a $21 million acquisition loan that came with a three-year term and interest-only payments for the first two years, a $3 million revolving line of credit for working capital, and a $3.5 million earn-out feature. The purchase price came to around $26.545 million, or $41,400 per bed. The four facilities had run into census issues early in the process (as had thousands of other facilities across the country), so Cascades has some wiggle room to improve operations and add value.
