VIUM Capital announced a healthy spree of bridge loan activity for skilled nursing clients in the last couple of months. All of the loans were interest only during the term, which ranged from two to three years. The largest was a $74.51 million bridge-to-HUD loan to support the acquisition of 11 skilled nursing facilities in Arkansas (10) and Mississippi. The portfolio was being sold by three different sellers, but VIUM closed all transactions under one bridge loan in less than 60 days from executed term sheet.
Next, VIUM arranged a $36.27 million bridge loan to refinance a portfolio of five skilled nursing facilities in Louisiana. The not-for-profit borrower had various tax-exempt bond issuances and bank term loans on 10 SNFs, prompting VIUM and a local bank to provide loans to refinance that debt. The VIUM loan allocated $36.267 million across five SNFs, which will be refinanced through HUD next year, with no seasoning requirement on the bridge loan. VIUM also helped the borrower unwind the bond structure with a lower cost of capital and fewer covenants to give them more time to prepare for a HUD takeout. The client also contributed about $4 million as an owner’s note that VIUM plans to refinance through HUD as well.
Finally, VIUM funded the executed purchase option of a 124-bed SNF in Texas with a $15.044 million bridge loan. The agreed-upon purchase price was $14.8 million, or $119,400 per bed, so the borrower financed 100% of its transaction costs with no equity contribution. Partial recourse (50%) also burns down upon submission of the HUD application. The newly constructed facility opened in March 2020, so the bridge loan needs to season for another year before VIUM submits the HUD application, likely in March 2023.
