Brookdale Secures Refinancing, Pays Off $312.5m In Debt

Brookdale has refinanced more than $300 million of its 2027 debt maturities.

The company received a $344 million loan under a master credit facility agreement, and the financing was used to repay variable rate debt due September 2027 while increasing Brookdale’s liquidity, according to a press release issued Monday.

The principal amount of the new debt is “secured by non-recourse first priority mortgages” on 47 communities and secures an additional $435 million of additional outstanding mortgages.

The release states the new loan has a fixed interest rate of 6.14%, is interest-only for the first two years, and matures in January 2032. Brookdale paid $312.5 million of outstanding mortgage debt in closing.

“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,” Dawn Kussow, Brookdale executive vice president and chief financial officer, said in the release. “We are pleased to benefit from the advanced refinancing on this facility, and we are grateful to Fannie Mae and JLL for their ongoing partnership.”

This refinancing comes after the recent news that Brookdale struck an agreement with real estate investment trust Ventas (NYSE: VTR) to continue managing 65 communities, following a negotiation related to a 120-property lease that Brookdale had declined to renew.

The post Brookdale Secures Refinancing, Pays Off $312.5M in Debt appeared first on Senior Housing News.