


Live Oak Bank Flourishes This Summer
Showing off its versatility, Live Oak Bank facilitated acquisition financing for two separate, and very different, transactions. First, the bank provided a cash flow balance sheet loan to support a partner buy-out at Frontier Management. Formation Capital had owned a 50% stake in the senior living operator, but with this transaction, Frontier’s founder and CEO, Greg Roderick, became the sole owner. Established in 2000, Frontier now operates 80 communities with over 6,000 independent living, assisted living and memory care units across 12 states. Second, Live Oak Bank provided a $5 million SBA 7a loan for local operator in Utah to acquire two small assisted living communities in the town of... Read More »
Major Moves at HealthTrust
National appraisal and advisory firm HealthTrust has had a busy month. On March 1, they closed on the purchase of the assets of the company from Sabra Health HealthCare REIT, which took over ownership as part of Sabra’s acquisition of Care Capital Properties last year. Care Capital had purchased HealthTrust when it was spun out of Ventas. Being independent once again will allow management to solidify key relationships and focus on growth. The company also announced that it hired Michael T. Jones as its Chief Financial Officer. Jones brings 20 years of seniors housing and care experience to HealthTrust, most recently serving as VP and Portfolio Manager at Care Capital Properties and also as... Read More »
HCP In Hot Water Again
We are sure that management at HCP, Inc. is happy that they spun out the HCR ManorCare assets to a new REIT, since they have not had to deal with the continuing rent shortfall, which started when HCP still owned the assets. But leveraged investments of any kind seem to be taking their toll across the board. From July 2012 through May 2015, HCP funded a total of $257 million under a collateralized mezzanine loan facility with Tandem Health Care. This loan matures in nine months and has a weighted average interest rate of 11.5% (ouch). In tandem with this loan, there is a $257 million syndicated senior loan that matures in six months. Through sales of various SNFs, most of the net proceeds... Read More »