Twenty-eight skilled nursing facilities in Texas and Oklahoma will be purchased by the non-profit Preservation Freehold Corp., with $689.7 million of unrated taxable and tax-exempt bonds coming to market this month to finance the purchase or refinance of the facilities.

The Bond Buyer first reported the news on February 14.

All but two of the SNFs are owned by WR Investments, a for-profit limited partnership in Texas, the publication reported. Sanctuary LTC, which has Freehold as its sole member, is the borrower.

BB&T Capital Markets will serve as the sole underwriter for the deal, according to Bond Buyer, and the total sale price for the facilities will total $555.7 million.

The bonds will price through negotiation in the last week of this month, BB&T managing director Stephen Coma told the publication, through New Hope Cultural Facilities Corp.

According to Coma, the facilities have been privately financed up to the present.

“Essentially, they are selling assets from a for-profit owner to a non-profit entity,” Coma told Bond Buyer.

The facilities are managed by Lewisville, Texas-based StoneGate Senior Living, which will keep managing them after the transaction.

“The general consensus is that the trend is increasing demand with increasing regulatory pressure,” Coma told Bond Buyer. “They’ve done it in two states that have not been particularly generous with Medicaid.”