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Brookdale Senior Dwelling has bought its remaining 20% fairness curiosity in its house well being and hospice joint-venture with HCA Healthcare (NYSE: HCA) for $27 million.
Brookdale, the nation’s largest operator with 672 communities in 42 states, didn’t instantly title a purchaser or reply to a request for extra data Wednesday.
The sale comes months after Brookdale CEO Cindy Baier mentioned the corporate would proceed to “lean in” to its well being care packages, together with HealthPlus.
“We will as soon as once more report margin enlargement in 2024 as we enhance leverage of fastened prices, and naturally develop into extra productive whereas assembly our residents’ wants offering prime quality care and providers,” Baier mentioned throughout the firm’s earnings name in November. “Trying forward, it stays simple that demand from the goal senior demographic is right here and rising.”
The Brentwood, Tennessee-based senior dwelling operator fashioned the three way partnership in 2021 after promoting an 80% stake in its well being care providers phase to Nashville-based well being care supplier HCA in a $400 million transaction.
The JV later that yr bought off plenty of property to LHC Group, which itself was acquired by UnitedHealth Group (NYSE: UNH) subsidiary Optum Well being in 2022.
In tandem with the sale of its HCA stake, Brookdale refinanced its remaining 2024 debt maturities, pushing its subsequent debt maturities out to 2025.
“We consider the optimistic strides we’ve got made in 2023 are mirrored in these accomplished financing transactions, which clear our debt maturities till 2025,” mentioned Daybreak Kussow, Brookdale’s government vp and CFO, in a press release. “The continuing proactive administration of our liquidity place, together with these accomplished and pending transactions, along with Brookdale’s strong enchancment in working outcomes, assist our continued sturdy liquidity place.”
Additionally within the month of December, Brookdale bought a $180 million mortgage with Jones Lang LaSalle Multifamily, which was obtained pursuant to Fannie Mae’s DUS Program. Brookdale secured the debt by way of non-recourse first mortgages on 47 communities, “which additionally proceed to safe roughly $580 million of further excellent mortgages with a later maturity,” the operator mentioned.
On the time of the mortgage’s closing, Brookdale used proceeds from the mortgage and money available to repay $260 million of debt scheduled to mature in 2024.
Brookdale additionally amended its revolving credit score settlement with Capital One to “present an expanded dedication of as much as $100 million which may be drawn in money or as letters of credit score and represents a $20 million improve from the beforehand current dedication.”
Brookdale’s amended credit score facility matures in early 2027, with choices to increase the ability to March 2028 and March 2029.