A regional owner/operator borrower engaged JD Stettin of Carnegie Capital to source a loan to pay off its maturing bridge acquisition debt on a portfolio of four skilled nursing facilities with 309 beds in southern Oklahoma. The current owner had been operating the assets for a number of years before exercising on a purchase option to buy them over two years ago. A HUD takeout was part of the plan, but the portfolio needed more time to stabilize. Portfolio-wide EBITDAR was near break-even prior to debt service, and state approval of the new Medicaid reimbursement rates wasn’t issued prior to closing the new loan.
Carnegie sourced multiple term sheets from banks, credit unions, community development financing institutions and private lenders before closing the refinance with a bank for $14.5 million at 70% loan-to-value. The loan has a 7.5% interest rate fixed for five years and is open to prepayment at any time without penalty.
