EVA Care Group, a national healthcare conglomerate based in Los Angeles, secured a new credit facility to refinance existing debt, fund capital improvements and take out cash on a couple of senior care properties in southern California. Helios Healthcare Advisors arranged the facility on behalf of EVA.
The properties in question include a 99-bed skilled nursing facility and a 66-bed assisted living community. The SNF was built in the 1970s and was underperforming, with occupancy in the mid-60s. Built in 1994, the assisted living community was also occupied around 60% and needed renovations to enhance its appeal in the market. There was a maturing seller note on the AL property, while the SNF was unencumbered. So, EVA obtained a credit facility across both properties to take out the seller note, provide funds for the AL renovation and to secure a cash-out refinance of the SNF to fund working capital needs within the organization.
Helios secured near-immediate funding through a private credit fund that underwrote the request on a low loan-to-value basis. The entire process, from term sheet execution to funding, took only 15 days.
