Brookdale refinances $619 million in mortgage debt to increase liquidity

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Lucinda M. Baier
Lucinda M. Baier

Brookdale Senior Living has refinanced $618.9 million in outstanding mortgage debt, including $389.9 million of debt that was scheduled to reach maturity next year, through a $975 million credit facility from Jones Lang LaSalle Multifamily, the company announced Thursday.

“We are pleased with the progress that we have made on our previously discussed plan to refinance our 2018 maturities and build liquidity,” Lucinda M. Baier, Brookdale's chief financial officer, said in a statement.

During the company's second-quarter earnings call Aug. 8, President and CEO Andy Smith told participants that Brookdale was reducing leverage and increasing liquidity to “put the company in the best financial position.”

The actions come at a time when Brookdale is rumored to be in talks to sell some or all of its assets. During the earnings call, Executive Board Chairman Dan Decker said the company does not comment on speculation but that it has an “ongoing process to explore options and alternatives available to us to enhance shareholder value.”

“No decision has made to enter into transaction at this time, and we want to confirm that Brookdale will only enter into a transaction or transaction if we can do so under terms that our board concludes are in the best interest of the company and its shareholders,” he said.

At the time, Baier said the company's total liquidity was continuing to increase, going to $546 million on June 30 from $306.3 million on June 30, 2016,

“Compared to the prior quarter, our liquidity increased by $119.3 million,” she said during the call.

Thursday, Baier said that Brookdale will use cash to repay its largest remaining outstanding debt scheduled to mature in 2018, which is $316.3 million of convertible senior notes.

The loans announced Thursday were made through Fannie Mae's Delegated Underwriting and Servicing program. They were secured by first mortgages on 51 communities.

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