#United States #Nashville #Fannie Mae #Brookdale Senior Living #JLL Real Estate

Brookdale Senior Living's Strategic Refinancing Move

Brookdale Senior Living Inc. is making headlines with its recent refinancing transaction aimed at managing a substantial portion of its 2027 debt maturities. This strategic move, valued at over $300 million, underscores the company's proactive approach to financial management as well as its commitment to ensuring liquidity in the face of future obligations.

Details of the Refinancing

On December 20, 2024, Brookdale successfully secured a loan amounting to $344.2 million under its Master Credit Facility Agreement established in August 2017. This financing is facilitated through JLL Real Estate Capital, LLC and adheres to Fannie Mae's DUS Program. The primary goal of this refinancing initiative was to repay $312.5 million of variable-rate debt that was scheduled to mature in September 2027.

The newly acquired debt is supported by first priority mortgages on 47 of Brookdale's communities and is secured alongside approximately $435 million of existing mortgages. The new loan carries a fixed interest rate of 6.14%, with interest payments required only during the initial two years of its term. Maturity is set for January 2032.

Benefits of the Refinancing

This refinancing narrative highlights Brookdale's commitment to sound financial practices. Through a thoughtfully executed refinancing transaction, the company has not only addressed its upcoming debt maturity challenges but has also benefitted from significant interest cost savings, transitioning from a previously variable rate of 7.20% to a more manageable 6.14%.

Dawn Kussow, Brookdale's Executive Vice President and Chief Financial Officer, commented on the refinancing's implications, stating, "Demonstrating ongoing proactive management of our balance sheet, we once again completed a beneficial financing transaction to address a future debt maturity at a favorable rate." She expressed gratitude to both Fannie Mae and JLL for their support in this transaction.

About Brookdale Senior Living

Brookdale Senior Living Inc. stands as a leader within the senior living sector in the United States, being the premier operator of communities catering to seniors across the country. Its services encompass independent living, assisted living, and memory care, all designed with the aim of enriching the lives of residents.

As of September 30, 2024, Brookdale operates 648 communities spread across 41 states, offering care and services to approximately 58,000 residents. The company is devoted to fostering an environment that promotes wellness and community connection, which is vital for enhancing the quality of life for seniors.

Brookdale's diversified expertise in healthcare, hospitality, and real estate allows it to adapt to the unique needs of its residents while ensuring stability and sustainability within its operations. The company continues to forge partnerships and explore opportunities to elevate its mission through effective management of both physical infrastructures and financial obligations.

This refinancing serves as a vital stepping stone that positions Brookdale to navigate upcoming challenges successfully and reinforces its reputation as a reliable operator in the senior living space. As the landscape of senior care continues to evolve, Brookdale demonstrates that it is strategically equipping itself for future endeavors.

For more information about Brookdale and its services, you can visit brookdale.com or connect on platforms like Facebook and YouTube.