There was a major skilled nursing deal in the state of West Virginia, where 17 skilled nursing facilities and one facility under development sold to a joint venture between a prominent SNF real estate owner and an operating partner, CommuniCare Health Services. The seller was Stonerise, which also divested its seven home health agencies and affiliated therapy and hospital services. Its portfolio included around 2,000 skilled nursing beds.
No purchase price has been disclosed, but we know that White Oak Healthcare Partners, the HUD affiliate of White Oak Healthcare Finance, structured $582 million in acquisition financing for the buyer. The debt was structured as a unitranche loan with a national bank serving as administrative agent for the bank syndicate and White Oak Healthcare Partners arranging $100 million in junior capital through its proprietary program with CareTrust REIT. That included a $75 million “C” piece and a $25 million mezzanine loan.
The “C” tranche of the senior secured term loan carries a five-year maturity and an annual interest rate of approximately 8.4%, while the mezzanine loan bears interest at 11% and has a ten-year term. CareTrust funded the loans with proceeds from its $600 million unsecured revolving credit facility.
