As with several companies still trying to regain their financial footing after the pandemic, investors were worried about Brookdale Senior Living’s looming debt maturities. Worry no more, at least for the next few years.
The company recently obtained a $180 million loan under its Master Credit Facility Agreement of 2017. The Fannie Mae financing was done with Jones Lang LaSalle Multifamily, LLC. It bears interest at a fixed rate of 5.97% and matures in 2031. Cash on hand and the proceeds of the new debt were used to repay $260 million of debt due in 2024.
In addition, the company amended its revolving credit agreement with Capital One, which provides for an expanded commitment of up to $100 million. The credit facility matures in January 2027 with options to extend to March 2028 and March 2029. The interest rate will be SOFR plus 250 basis points at less than 50% utilization, and SOFR plus 300 basis points if greater than 50% utilization.
Brookdale also sold its remaining 20% interest in its home health & hospice business for proceeds of $27 million. The 80% interest was sold in November 2021. All the cash coming in will help the company on its road to recovery. The share price is now near its 52-week high.
