Brookdale Senior Living Completes $100 Million Refinancing, Prepays 2022 Debt – Senior Housing News

Brookdale Senior Living (NYSE: BKD) wrapped up 2021 by completing a pair of significant moves; completing a $100 million refinancing and prepaying substantially all of its remaining 2022 maturities.

“By proactively prepaying substantially all remaining 2022 maturities early, we will save several million dollars of negative carry,” Brookdale Executive Vice President and CFO Steven Swain said in a press release issued Tuesday.

Brookdale plans to refinance newly unencumbered communities with lower-leverage mortgage debt, accruing to Swain.

The new $100 million of mortgage debt came from Capital One, National Association; CBRE Capital Markets served as the financial advisor for Brookdale to obtain the loan.

The first-priority, non-recourse mortgages were secured by 11 communities, which previously were financed with $143 million in Fannie Mae loans maturing in the first quarter of 2022.

The moves are the latest financing actions for the largest senior living provider in the country, which operates more than 680 communities in 41 states.

“We’ve taken multiple steps in the last two quarters to enhance liquidity,” said Swain.

One such move Brookdale made to enhance liquidity was offering $200 million in convertible senior notes due on Oct. 15, 2026.

The company also sold 80% of its home and hospice business to HCA Healthcare (NYSE: HCA), the nation’s largest hospital system. The sale resulted in over $300 million in net cash proceeds, as reported by Senior Housing News. Prior to that move, Brookdale’s liquidity exceeded $380 million.

Brookdale also recently posted its November 2021 occupancy numbers, showing that the weighted average occupancy of its portfolio was more than 73%, the ninth consecutive month of growth and the first month since the pandemic began that saw year-over-year growth.

The fourth-quarter average occupancy will be 90 basis points higher than third-quarter averages if December holds, according to Stifel analysts.

Brookdale’s liquidity and “above-historical” occupancy growth provide the firm with runway should pandemic-related economic hardships persist.

And, the company is pursuing rate growth to boost revenue-per-occupied room, with Brookdale CEO Cindy Baier bullish on the prospects for strong top-line performance in 2022.