Brookdale Senior Living Elects to Settle Purchase Contracts Early for Financial Strategy Optimization

Brookdale's Strategic Move: Early Settlement of Purchase Contracts

On March 27, 2025, Brookdale Senior Living Inc. (NYSE: BKD) made a significant announcement regarding its financial strategy by exercising the right to early settlement of its prepaid stock purchase contracts. This move signals a proactive approach aimed at optimizing its financial position and benefitting its shareholders.

Understanding the Purchase Contracts

The purchase contracts involved are linked to the 7.00% tangible equity units issued by Brookdale on November 21, 2022. Each tangible equity unit not only includes these contracts but is also backed by a senior amortizing note that matures on November 15, 2025. The last trading date for these tangible equity units is set for March 28, 2025.

According to the company's announcement, holders of the purchase contracts will receive 12.9341 shares of common stock for each contract, along with cash for any fractional shares. This settlement is determined based on the average price of the company's shares traded on the New York Stock Exchange during the 20 trading days ending March 26, 2025.

Financial Implications

Brookdale's decision to settle these contracts early is part of a broader strategy aimed at benefiting its financial health. This action could lead to increased liquidity and potentially enhance shareholder value in the near term. It also allows the company to simplify its capital structure, offering clarity and stability to the investors and stakeholders involved.

In addition, by allowing for a repurchase of notes by April 23, 2025, Brookdale continues to demonstrate its commitment to maintaining stakeholder relationships while also managing its internal financial commitments effectively.

Notifications to Stakeholders

A notification regarding the early settlement was issued to the holders of the tangible equity units and separated purchase contracts on the same day as the announcement. This notification serves to inform stakeholders of their rights and the upcoming processes involved in the settlement.

It is crucial to note that this announcement does not constitute an invitation to buy or sell any securities, reflecting the company's compliance with relevant securities regulations and its dedication to transparency in its financial dealings.

About Brookdale Senior Living

Brookdale Senior Living Inc. is recognized as the leading operator of senior living communities across the United States. With 647 communities serving around 58,000 residents as of December 31, 2024, the company is dedicated to enhancing the quality of life for seniors through its various service offerings, including independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale's commitment is underpinned by its core values: passion, courage, partnership, and trust. These values guide its mission to provide exceptional care and services, promoting the well-being and dignity of seniors in a supportive environment that feels like home.

With its stock actively traded on the NYSE under the ticker symbol BKD, Brookdale remains focused on fostering a future where senior living is synonymous with quality, respect, and growth. As the company moves forward with its strategic plans, stakeholders look forward to witnessing the impact of these changes on Brookdale's operational success and market positioning.