NASHVILLE, Tenn., Feb. 14,
2012 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD)
(the "Company") today announced that it has recently completed the
acquisition of nine communities with a total of 1,295 units for an
aggregate purchase price of $121.3
million, plus customary transaction expenses. The
communities had previously been operated by the Company under
long-term leases that were accounted for as operating leases.
"Acquiring these communities gives us the opportunity to move
forward with renovating and repositioning these assets to improve
their financial performance. By owning these assets outright,
we will capture the assets' entire value creation potential and
preserve important optionality with respect to these assets,
including the ability to expand some of these communities if we
decide to do so or to dispose of those that may not fit our
long-term strategy," said Bill
Sheriff, Brookdale's Chief Executive Officer.
The Company financed the transaction with $77.9 million of first mortgage financing secured
by seven of the communities and $15.0
million of seller-financing secured by two of the
communities. The $77.9 million
first mortgage facility has a ten year term. 75% of the
facility bears interest at a fixed rate of 4.21% and the remaining
25% of the facility bears interest at a variable rate of 30 day
LIBOR plus a margin of 276 basis points. The $15.0 million mortgage loan has a two year term
and bears interest at a fixed rate of 7.0%.
Additionally, the Company announced that it had obtained a
$63.0 million first mortgage loan
secured by one of the Company's communities. The loan has a
five year term and bears interest at a variable rate of 30 day
LIBOR plus 300 basis points. In connection with the
transaction, the Company repaid a $62.8
million first mortgage loan that was scheduled to mature in
2013. The refinancing transaction represents another step in
the process of the Company's plan for addressing its 2013 debt
maturities.
About Brookdale Senior Living
Brookdale Senior Living Inc. is a leading owner and operator of
senior living communities throughout the United States. The
Company is committed to providing an exceptional living experience
through properties that are designed, purpose-built and operated to
provide the highest-quality service, care and living accommodations
for residents. Currently the Company operates independent
living, assisted living, and dementia-care communities and
continuing care retirement centers, with 646 communities in 36
states and the ability to serve approximately 67,000 residents.
Safe Harbor
Certain items in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Those forward-looking
statements are subject to various risks and uncertainties and
include all statements that are not historical statements of fact
and those regarding our intent, belief or expectations, including,
but not limited to, all statements regarding our plans to renovate
and reposition the acquired communities, our expectations
concerning the future performance of the acquired communities, our
ability to secure financing or repay, replace or extend existing
debt at or prior to maturity and our expectations regarding
financings and refinancings of assets and their effect on our
results. Words such as "expect(s)" and similar expressions
are intended to identify such forward-looking statements. These
statements are based on management's current expectations and
beliefs and are subject to a number of factors that could lead to
actual results materially different from those described in the
forward-looking statements. We can give no assurance that our
expectations will be attained. Factors that could cause actual
results to differ materially from our expectations include, but are
not limited to, the risk that we will be unable to improve the
communities' results of operations and cash flows, the risk
associated with the current global economic crisis and its impact
upon capital markets and liquidity, the risk that we may not be
able to extend (or refinance) debt as it matures, the possibilities
that changes in the capital markets, including changes in interest
rates and/or credit spreads, or other factors could make financing
more expensive or unavailable to us, our ability to obtain
additional capital on terms acceptable to us, and the other risks
detailed from time to time in our filings with the Securities and
Exchange Commission. Such forward-looking statements speak only as
of the date of this press release. We expressly disclaim any
obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in our expectations with regard thereto or change in events,
conditions or circumstances on which any statement is based.
SOURCE Brookdale Senior Living Inc.