Helios Healthcare Advisors structured the sale and recapitalization of an assisted living and memory care provider in Wisconsin. Through the provider’s lender, a publicly traded regional bank with $23 billion in assets, Helios was brought into the process to advise all stakeholders on a viable path to exit the credit and assets associated with the organization. The first step was divesting the non-performing assets to regional operators including behavioral health providers in Wisconsin, which Helios handled. Then, they repackaged the remaining performing assets, brought in a new operator, and arranged the debt to recapitalize the portfolio, keeping the existing financial partner involved and retiring the existing operating partner and lender.
Helios worked with the previous lender’s special assets team, and at the conclusion of the process, the firm had recovered 95% of the outstanding debt associated with the provider. That sounds like a success.
Helios also arranged a $7.5 million term loan and revolving line of credit for a Minnesota-based provider of specialty memory care services. The borrower obtained an 18-month, interest only loan to support their acquisition of a memory care community in one of the more affluent suburbs of St. Paul, Minnesota.
The community was stabilized at the time of the acquisition and originally developed by the borrower in partnership with a Chicago-based private equity firm. Prior to the financing, the borrower had leased the community from the seller. The financing was sourced through a Minnesota-based community bank that is active in the Minneapolis-St. Paul metro.
