Brookdale Refinances Credit Facility Assets with Freddie Mac Mortgage Loans
September 02, 2020 at 08:00 AM EDT
NASHVILLE, Tenn., Sept. 2, 2020 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or "the Company") announced that it recently completed a significant financing transaction. On August 31, 2020, Brookdale secured $267 million of non-recourse mortgage debt and terminated its $250 million revolving credit facility.
The Company obtained $267 million of ten-year mortgage financing from Capital One, National Association pursuant to Freddie Mac's Capital Markets Execution Program. The financing includes $191 million of 2.89 percent fixed rate notes and $76 million of adjustable rate notes with an initial rate of 2.64 percent. The first priority mortgages were secured by 16 senior living communities, most of which had previously secured Brookdale's revolving credit facility. At the closing, the Company repaid the outstanding principal amount and cash collateralized letters of credit outstanding on the credit facility without payment of any termination fee or penalty.
Steven Swain, Brookdale's Executive Vice President and Chief Financial Officer, said, "We are pleased to continue enhancing our financial flexibility. We have now executed on our previously disclosed plan to refinance the assets securing our credit facility with non-recourse, long-term mortgages at an attractive initial weighted average loan rate of 2.82 percent. After refinancing the credit facility assets, this transaction maintains our liquidity level while extending maturities. We would like to thank Capital One and Freddie Mac for their continued partnership."
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SOURCE Brookdale Senior Living Inc.