One side to the surge in M&A activity in the last couple of weeks is the financing side of it, and CIBC Bank USA announced a couple of acquisition loans for skilled nursing purchases. CIBC’s Adam Panos first closed a $91 million loan with a three-year term for Summit Healthcare REIT’s acquisition of eight skilled nursing facilities totaling 826 beds. The purchase price came to $130 million, or $157,000 per bed, and brings the private REIT’s total 2021 investment in skilled nursing M&A to $150 million. Summit is leasing the facilities back to a local operator on a triple-net basis. CIBC served as the sole senior lender, and Oxford Finance also worked on financing the deal.
Next, CIBC Bank USA provided $20.2 million in acquisition financing for two senior care facilities in central Ohio. Comprising 199 skilled nursing and 27 assisted living beds, the facilities were sold by a local owner who was divesting a portion of their senior care assets. Historical performance had been stable, despite the pandemic, because of effective cost management and high quality of care. However, the buyer plans to improve performance through increased reimbursement and improved census. Daniel Forrer handled the financing, also providing a $2 million revolving line of credit to support post-acquisition working capital needs at the facilities.
