Brookdale Refinances $250M Credit Facility with Freddie Mac Mortgage Loans

by Jeff Shaw

NASHVILLE, Tenn. — Brookdale Senior Living Inc. (NYSE: BKD) has secured $267 million of non-recourse mortgage debt and terminated its $250 million revolving credit facility.

The company obtained 10-year mortgage financing from Capital One, National Association pursuant to Freddie Mac’s Capital Markets Execution Program. The financing includes $191 million of 2.89 percent fixed-rate notes and $76 million of adjustable rate notes with an initial rate of 2.64 percent.

Brookdale is securing the loans with 16 senior living communities, most of which had previously secured Brookdale’s revolving credit facility. At the closing, the company repaid the outstanding principal amount and cash collateralized letters of credit outstanding on the credit facility without payment of any termination fee or penalty.

“We are pleased to continue enhancing our financial flexibility,” says Steven Swain, Brookdale’s CFO. “After refinancing the credit facility assets, this transaction maintains our liquidity level while extending maturities.”

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