New Senior Announces Completion of $640 Million Acquisition of Independent Living Assets
August 17 2015 - 4:56PM
Business Wire
New Senior Investment Group Inc. (“New Senior” or the “Company”)
(NYSE:SNR) announced today that it completed on August 12, 2015 the
previously announced acquisition of 28 private pay, independent
living properties (the “Portfolio”) from affiliates of Holiday
Retirement (“Holiday”) for $640 million. The Portfolio is 100%
private pay, contains 3,298 units located across 21 states and had
an average occupancy rate of 89.8% for July 2015. The Portfolio
will continue to be operated by Holiday under new property
management agreements.
The acquisition of the Portfolio was funded with cash on hand
and proceeds from a fixed rate, 10-year first mortgage loan (the
“Loan”). The Loan, which was obtained from Freddie Mac through
Walker & Dunlop, is secured by the Portfolio. The aggregate
amount of the Loan is approximately $465 million, and the Loan
bears interest at a fixed rate of 4.25%. As a result of the
proceeds from the Loan being approximately $15 million higher than
originally expected, the Company intends to pay down $15 million of
existing floating rate debt on September 1, 2015.
“This acquisition further increases our industry-leading private
pay senior housing exposure to 92% of our NOI,” New Senior Chief
Executive Officer Susan Givens said. “As the largest operator of
independent living properties in the United States, Holiday has a
strong track record of outstanding performance for our existing
portfolio, and we are excited to grow our relationship with them.
In addition, the financing further improves our balance sheet by
extending the average maturity of our total debt and increasing our
fixed rate debt to approximately 60% of our total debt.”
ABOUT NEW SENIOR
New Senior is a real estate investment trust focused on
investing in senior housing properties across the United States.
The Company is one of the largest owners of senior housing
properties and currently owns 152 properties in 37 states. New
Senior is managed by an affiliate of Fortress Investment Group LLC,
a global investment management firm. More information about New
Senior can be found at http://www.newseniorinv.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain items in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements regarding the expected pay
down of existing floating rate debt. These statements are not
historical facts. They represent management’s current expectations
regarding future events and are subject to a number of trends and
uncertainties, many of which are beyond our control, that could
cause actual results to differ materially from those described in
the forward-looking statements. Accordingly, you should not place
undue reliance on any forward-looking statements contained herein.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in the Company’s
Annual Report on Form 10-K, which is available on the Company’s
website (www.newseniorinv.com). New risks and uncertainties emerge
from time to time, and it is not possible for New Senior to predict
or assess the impact of every factor that may cause its actual
results to differ from those contained in any forward-looking
statements. Forward-looking statements contained herein speak only
as of the date of this press release, and New Senior expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in New Senior's expectations with regard thereto
or change in events, conditions or circumstances on which any
statement is based.
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New Senior Investment Group Inc.David Smith, 212-479-3140
New Senior Investment (NYSE:SNR)
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