Sabra Restructures Master Lease with Signature HealthCARE

IRVINE, Calif. — Sabra Heath Care REIT Inc. (Nasdaq:SBRA) has restructured the company’s master leases with its tenant, Signature HealthCARE.

The restructuring includes a provision that will provide Signature with working capital in the form of a term loan. Sabra issued the $12 million at a 7 percent interest rate for a period of seven years.

The restructuring combines several leases into a single, 11-year master lease with three five-year extension options. Annual rent will be $35 million with CPI-based escalators of 2.5 percent to 3.5 percent.

Sabra will also sell up to four non-core assets, resulting in an estimated rent credit of $1.9 million based on projected net proceeds of $22 million on the sales.

Although payment issues were not specifically cited by Sabra, the company released information that referred to Signature’s deferred rent, satisfying fiscal obligations and unpaid vendor costs.

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