The Ensign Group Inc. (Nasdaq: ENSG) announced on Tuesday that it increased its credit facility by $250 million, reaching an aggregate of $600 million for the skilled nursing operator.
The borrowings are supported by a lending consortium arranged by Truist Securities. The new facility matures on April 8, 2027, and includes a $400 million incremental expansion option, among other things.
“These new borrowings further strengthen our long-term capital structure and, together with our strong operating performance, provide lots of dry powder for growth both on the operations and the real estate front. We have always been very prudent 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 news release.
In addition to refinancing some existing borrowings, the proceeds of the credit facility will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs and for other business purposes, according to Port.
Ensign added 17 operations to its portfolio in 2021 as it looks to build off a strong fourth quarter.
Following the federal government’s proposed payment rate update to nursing home reimbursements for fiscal 2023, which included a 4.6% cut related to the Patient-Driven Payment Model, Stifel analysts noted that operators like Ensign would likely be able to weather the potential effects, and potentially capitalize through acquisitions, of this cut.
“We think strong operators such as Ensign Group would be able to cope with upcoming changes better and capitalize on industry weakness to grow its portfolio through acquisitions,” analysts wrote in a note issued Monday.
Meridian’s $1B in Deals for Q1 Includes $100M Acquisition Loan for 7 SNFs
Meridian Capital Group’s senior housing and health care team closed nearly $1 billion in transactions the first quarter of 2022, including a $100 million acquisition loan for seven SNFs totaling 848 beds in Florida.
The busy first quarter follows a record-setting year in 2021 for the firm’s team, where they closed more than $5.5 billion in transaction volume.
The team also closed on a $19.7 million loan from a finance company for the acquisition of two skilled nursing facilities comprising 182 beds in New York.
Florida proved to be a busy state for Meridian as they closed a $48.2 million acquisition loan and a $3 million accounts receivable (AR) line for four facilities comprised of 341 skilled nursing 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 Closes $87,460,000 in Financing
Specialty investment bank Ziegler announced it closed $87,460,000 in financing for Cedar Crest Inc., a 274-unit life plan community in Janesville, Wis.
The community includes 135 independent living units, 44 assisted living units, 24 memory care assisted living units and a skilled nursing health center with 71 beds.
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 financing in part to renovate the existing health care center to incorporate a new therapy gym and updated common areas, as well as the construction of a new clubhouse.
Blueprint Finds New Operator for 7-Facility Portfolio
Blueprint announced a new regional provider will be taking over a seven-facility skilled nursing and assisted living portfolio in Pennsylvania, as part of a larger 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 Provides a $10M Credit Facility to SNF Chain
Siena Healthcare Finance announced it provided a $10 million working capital facility for a California-based chain of skilled nursing facilities.
“We provided a competitive and flexible solution to support our newest client’s working capital, not only for their current needs, but this line of credit sets the stage for their future growth initiatives,” Jennifer Sheasgreen, Siena Healthcare Finance president, said in the news release.
Sheasgreen said they are excited about the prospects for this company.
Companies featured in this article:
Blueprint Healthcare Real Estate Advisors, BMO Harris Bank, Meridian Capital Group, Siena Healthcare Finance, The Ensign Group, Ziegler
