CIBC Bank USA recently closed loans for two skilled nursing facilities in Ohio and one in California.
The first financing package included a $12.4 million acquisition loan and a $1.2 million capital expenditure loan with a five-year term for a 100-bed SNF in southern California, provided by CIBC’s Matthew Tyler and Neal Netzel. The 20-year old facility has been leased by the buyer for the past 10 years and has had a historical occupancy of 85%. EBITDAR margins have recently resided in the low double-digits, with revenues nearing $14 million.
The next transaction was a $10 million cash-out refinance for a 100-bed SNF in Ohio. The 15-year old facility was owned by a local owner/operator. EBITDAR margins have been in the mid-teens, and occupancy has been approximately 90%. A $1 million revolving line of credit was provided for working capital in addition to the five-year loan.
Finally, CIBC provided the same Ohio borrower with $5 million in acquisition financing for a 75-bed SNF, provided by Mr. Tyler and Daniela Miranda. This 25-year old facility, also in Ohio, is set to be repositioned by the buyer. It has operated at a loss recently, but historical occupancy was approximately 85%. This facility also received a $1 million revolving line of credit for working capital in addition to the five-year loan.
