Lument Securities announced that it recently advised Stonerise Healthcare on its sale to a New York-based real estate investment firm and an operating partner, CommuniCare Health Services. Stonerise’s network of care included 17 owned and operated skilled nursing facilities throughout West Virginia totaling 1,955 beds, a therapy company, seven home health and hospice agencies, an institutional special needs plan and a SNF development project.
Lument had a decade-long HUD financing relationship with Stonerise (which was led by Thomas Gale), and Laca Wong-Hammond and Dominic Porretta led the transaction as its exclusive financial advisor. The skilled nursing portfolio and therapy company sales closed on June 30, and the remaining businesses are set to close upon receipt of customary regulatory approvals.
No purchase price has been disclosed, but we know that White Oak Healthcare Partners, the HUD affiliate of White Oak Healthcare Finance, structured $582 million in acquisition financing for the buyer. The debt was structured as a unitranche loan with a national bank serving as administrative agent for the bank syndicate and White Oak Healthcare Partners arranging $100 million in junior capital through its proprietary program with CareTrust REIT. That included a $75 million “C” piece and a $25 million mezzanine loan.
The “C” tranche of the senior secured term loan carries a five-year maturity and an annual interest rate of approximately 8.4%, while the mezzanine loan bears interest at 11% and has a ten-year term. CareTrust funded the loans with proceeds from its $600 million unsecured revolving credit facility.
