Shareholders Approve Capital Senior Living Restructuring
Last Friday, Capital Senior Living announced that shareholders approved the amended agreement with Conversant Capital to provide needed funds to stabilize the company while it continues to work on increasing census, as well as funds for future growth. This involves plans to raise up to $154.8 million in various financings. This was based on preliminary vote estimates taken after the shareholder vote on Friday. The news of the presumed approval, without giving the breakdown of the voting, sent the shares up by 2.38% to close at $29.68. That is a far cry from where they traded last July. The day before they hit a low of $25.85 during the day, which was the lowest price since August 13. Keep... Read More »
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 »Schedule a demo
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