Ensign Increases Credit Facility to $600 Million with Growth in Mind; Meridian sees $1 billion in Q1 deals

The Ensign Group Inc. (Nasdaq: ENSG) announced on Tuesday that it has increased its credit facility by $250 million, reaching a total of $600 million for the skilled nurse operator.

The borrowings are backed by a lending syndicate organized by Truist Securities. The new facility matures on April 8, 2027 and includes, among other things, an additional $400 million expansion option.

“These new borrowings further strengthen our long-term capital structure and, coupled with our strong operating performance, provide plenty of dry powder for growth, both operationally and in real estate. We have always been very careful in protecting our balance sheet and this new facility provides us with excellent flexibility in an ever-changing healthcare environment,” Ensign CEO Barry Port said in a press release.

In addition to refinancing certain existing borrowings, proceeds from the credit facility will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital requirements and for other business purposes, according to Port. .

Ensign added 17 deals to its portfolio in 2021 as it looks to build on a strong fourth quarter.

Following the federal government’s proposed update to the nursing home reimbursement payment rate for fiscal year 2023, which included a 4.6% reduction related to the patient-focused payment model, analysts of Stifel noted that operators like Ensign would likely be able to weather the potential effects, and potentially capitalize through acquisitions, of this cut.

“We believe that strong operators such as Ensign Group would be able to better weather the changes ahead and capitalize on industry weakness to grow its portfolio through acquisitions,” the analysts wrote in a statement. note published on Monday.

Meridian’s $1 billion Q1 deals include $100 million acquisition loan for 7 SNFs

Meridian Capital Group’s senior housing and healthcare team closed nearly $1 billion in deals in the first quarter of 2022, including a $100 million acquisition loan for seven NFCs totaling 848 beds in Florida.

The busy first quarter follows a banner year in 2021 for the firm’s team, where it closed more than $5.5 billion in deal volume.

The team also secured a $19.7 million loan from a finance company to acquire two 182-bed skilled nursing facilities in New York City.

Florida proved to be a busy state for Meridian, which secured a $48.2 million acquisition loan and $3 million line of accounts receivable (AR) for four facilities comprising 341 care beds skilled nurses and 97 assisted living beds, as well as a $46 million acquisition and a $3 million AR line for two skilled nursing facilities totaling 360 beds.

Ziegler completes $87,460,000 financing

Specialty investment bank Ziegler announced that it has closed an $87,460,000 financing for Cedar Crest Inc., a 274-unit lifeplan community in Janesville, Wisconsin.

The community includes 135 Independent Living Units, 44 Assisted Living Units, 24 Memory Care Assisted Living Units, and a 71-bed Skilled Nursing Center.

The financing includes $57,460,000 of Series 2022A fixed rate revenue bonds and $30 million of bank debit purchased by BMO Harris Bank. Cedar Crest will use the funding in part to renovate the existing health care center to incorporate a new therapy gymnasium and upgraded common areas, as well as construct a new pavilion.

Blueprint finds a new operator for its portfolio of 7 installations

Blueprint announced that a new regional provider will take over a portfolio of seven skilled nursing and assisted living facilities in Pennsylvania, as part of a broader restructuring between a public real estate investment trust (REIT) and its regional operator.

The portfolio included six SNFs and one assisted living community.

Siena Healthcare Finance offers $10 million credit facility to SNF chain

Siena Healthcare Finance announced that it provided $10 million in working capital to a California chain of skilled nursing facilities.

“We have provided a competitive and flexible solution to support our new client’s working capital, not only for their current needs, but this line of credit paves the way for their future growth initiatives,” said Jennifer Sheasgreen, President of Siena Healthcare Finance, in the press. Release.

Sheasgreen said he is excited about the prospects for this venture.

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