NASHVILLE, Tenn. — Jones Lang LaSalle Multifamily has arranged $975 million in loans via Fannie Mae's DUS Program for Brookdale Senior Living Inc. (NYSE: BKD).
The credit facility refinanced $618.9 million of outstanding mortgage debt, including $389.9 million of debt that was scheduled to mature in 2018.
"We are pleased with the progress that we have made on our previously discussed plan to refinance our 2018 maturities and build liquidity,” says Lucinda M. Baier, Brookdale's CFO. “We plan to repay our largest remaining outstanding 2018 maturity, our $316.3 million of convertible senior notes, using cash on hand. Our 2017 refinancing activities have improved our risk profile by extending a majority of our 2018 maturities while increasing our liquidity and providing flexibility."
The loans are secured by first mortgages on 51 communities. Sixty percent of the principal amount bears interest at a fixed rate. One half of that amount bears interest at 4.43 percent and matures in 2024, while the other one half bears interest at 4.47 percent and matures in 2027. Forty percent of the principal amount bears interest at a variable rate equal to the 30-day LIBOR plus a margin of 241.5 basis points and matures in 2027.
The facility includes certain "borrow-up" and substitution provisions, as well as flexibility for expansion of, and repositioning of services provided at, the mortgaged properties.
Brookdale is the largest owner and operator of seniors housing communities in the United States.