Helios Healthcare Advisors announced its role in arranging a $14 million HUD loan for a 120-bed skilled nursing facility in Dallas, Texas. Helios was first engaged by the operator in 2022 to structure and arrange a bridge loan to acquire the facility from the operator’s landlord. Recognizing the operator’s limited liquidity, relationship with the landlord, and the facility’s asset value relative to the contract price, Helios proposed a structure that allowed the operator to acquire the facility utilizing a subordinated seller note.
The seller note effectively pushed leverage beyond the bridge loan’s advance rate. In conjunction with the closing of the bridge loan, the operator and lender began the application process to refinance the bridge and seller note through HUD’s 232/223(f) program.
The HUD refinance closed on February 28, 2023, successfully recapitalizing the bridge and subordinated seller note.
