By taking on $100 million in mortgage debt, Brookdale Senior Living said Monday, it will substantially prepay debts scheduled to mature in 2022, saving millions of dollars in interest.
“We’ve taken multiple steps in the last two quarters to enhance liquidity,” Vice President and Chief Financial Officer Steven Swain said in a statement. “We are pleased to have refinanced our first quarter 2022 maturities.”
The Brentwood, TN-based company, the largest senior living company in the country, obtained the mortgage debt Monday from Capital One, National Debt Association. The first priority, non-recourse mortgages were secured by 11 senior living communities, which previously had secured $143 million Fannie Mae loans that were to mature in the first quarter of 2022.
“By proactively prepaying substantially all remaining 2022 maturities early, we will save several million dollars of negative carry,” Swain said. “In 2022, we expect to refinance these newly unencumbered communities with lower-leverage mortgage debt.”
CBRE Capital Markets was Brookdale’s financial adviser in securing the refinancing, which has an initial three-year term and two one-year renewal options exercisable subject to certain performance criteria. The refinancing carries a variable interest rate of 2.15% over the secured overnight financing data rate.
