CareTrust REIT made a couple of announcements around the holiday weekend, starting with Greg Stapley resigning as Executive Chair of the Board of Directors. In conjunction with the announcement, CareTrust also revealed that Lead Independent Director Diana Laing was appointed to replace Mr. Stapley as Chair of the Board, and CEO David Sedgwick was appointed as a director. Mr. Stapley had stepped down as CEO in January 2021 with the intention of pursuing a full-time international volunteer assignment for The Church of Jesus Christ of Latter-day Saints, and stepping down from the board will allow him to devote 100% of his energy to the mission.
CareTrust then announced a transaction where it extended a $75 million “C” piece financing as part of a larger multi-tranche senior secured term loan and also extended a $25 million mezzanine loan to a private equity skilled nursing real estate owner in connection with the acquisition of an 18-property portfolio in the Mid-Atlantic. That portfolio includes approximately 2,000 skilled nursing beds.
The “C” tranche of the senior secured term loan carries a five-year maturity and an annual interest rate of approximately 8.4%. The mezzanine loan bears interest at 11% and has a ten-year term. It was funded with proceeds from CareTrust’s $600 million unsecured revolving credit facility.
