Lending in the senior care space may have slowed in 2023, but CIBC Bank USA announced a slew of new loans it provided to skilled nursing facilities across the country in the last couple of months. The largest went to an Indiana-based owner/operator to acquire four skilled nursing facilities in the southern part of the state. Totaling 450 beds, the facilities were managed by a local operator and had an effective age between 10 and 15 years. Historical EBITDAR margins were close to 15% and were around that level at the time of the deal. The buyer received a $32 million loan plus a $4 million revolving credit facility for the acquisition.
Next, a Nebraska owner/operator bought a 120-bed skilled nursing facility in eastern Nebraska with a $13.6 million mortgage facility provided by CIBC. The facility, which has an effective age of 25 years, was previously run by an out-of-state operator. Its new owner also received a $1 million line of credit.
CIBC funded another acquisition, providing a $12.0 million mortgage facility for the operator of a 90-bed SNF in Southern California to effectuate a purchase option on the property. Built 15 years ago, the facility had been managed by the buyer since 2010. Historical occupancy was around 90%, with EBITDAR margins approximately 11%.
Finally, CIBC provided $19 million in financing to refinance two skilled nursing facilities in Kentucky and Florida. Totaling 180 beds, both were managed by local operators and have an effective age of 18 years. Occupancy historically reached 90%, and EBITDAR margins were approximately 15%. Matthew Tyler and Neal Netzel at CIBC arranged the transactions.
