Occupancy Growth Slowing?
Historically, the third quarter is always the best quarter for census growth, and it has generally been a good quarter for most senior living providers. But September has seen a bit of a slowdown, which does not bode well for the fourth quarter. The summer jump in COVID cases may have something to do with it, but also adapting to an influx of new residents may not be easy with the labor shortages nationally. Capital Senior Living just announced that its September average occupancy increased by 20 basis points from the August average, reaching 81.4%. That is also a 610-basis point increase from the pandemic low of 75.3% in February. But it is a much smaller increase than the 80-basis point... Read More »
The Battle Continues for Capital Senior Living
The saga continues for Capital Senior Living. Days after CSU announced that it had entered into an amended and restated agreement with Conversant Capital, a vocal opponent to the deal (and 12.7% stockholder of CSU) Ortelius Advisors, L.P. issued a letter to stockholders urging them to vote against the amended transactions at the October 22 special meeting. Ortelius made it clear that they thought the CSU Board’s deals with Conversant have been flawed from Day One. They called it exceedingly costly, highly dilutive, and only stood to benefit a few parties, including management, two large investors (Arbiter and Silk) and Conversant. Let’s get to the details. First, Ortelius made clear that... Read More »
Capital Senior Living Postpones Vote
With so much activity around some alternative restructuring opportunities being offered for Capital Senior Living, it is no wonder they decided to postpone the shareholder meeting to vote on the Conversant Capital proposal. The new date is October 22, 10 days later than the original date of October 12. Previously, Ortelius Advisors (which owns about 13% of Cap Senior) disclosed their own recap proposal with terms that were cheaper than those of Conversant Capital. Now, Invictus Global Management has announced they too can arrange up to $150 million of new capital for Cap Senior, also at better terms for the company, and current shareholders, than the current Conversant Capital deal. ... Read More »
Families Taking Care of Families
Family-run senior living communities have had a long history in our industry, but perhaps not many as long as the Rauls family in Georgia. Going back to their grandfather, who owned and operated one of the first nursing homes in Georgia more than 60 years ago, for John Rauls and his sister Ashley, you can say taking care of the elderly runs in their blood. Their father has also been in the business, and is in fact the Chairman of Rauls Living Inc., with John as CEO and Ashley as COO. Rounding out the C-Suite is the CFO, Jimmy Hill, a non-family member, but no one is holding that against him. John was recently vice president at Southeastern Retirement Management, which had several Rauls... Read More »
New Proposal for Capital Senior Living
As we get closer to the voting date for shareholders to approve of the recapitalization proposal of Capital Senior Living by Conversant Capital, with the full support of Cap Senior’s management and board, at long last an alternative plan has been put forward. We didn’t think that Ortelius Advisors had much of a leg to stand on in their proxy fight without any alternative for shareholders to consider. Now we have one, as loosey-goosey as it may be. Ortelius has proposed a new equity rights offering, which they will backstop and subscribe to well beyond their current pro rata holdings of about 12.7%. They believe that raising up to $70 million of new... Read More »Schedule a demo
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