Capital Senior Living – CSU – Acquires Eight Communities for $72.9 Million
NYSE:CSU), one of the country’s largest operators of senior living communities, announced that it has completed the acquisition of eight senior living communities for a purchase price of $72.9 million. These communities are in Texas, Indiana and Ohio, enhancing the Company’s existing operations in these states. The levels of care offered in the portfolio include assisted living and memory care.
CSU – Highlights of this transaction include:
- Additional Cash From Facility Operations (“CFFO”) of $3.6 million, or $0.13 per share.
- Incremental earnings of $2.0 million, or $0.08 per share.
- Increases annual revenue by approximately $20.4 million.
- Average occupancy above 95%.
- Average monthly rents are approximately $3,200.
The eight communities are financed with an aggregate of approximately $50.2 million of non-recourse mortgage debt consisting of approximately $29.0 million of 10-year debt with a fixed interest rate of 4.34%; approximately $3.2 million of assumed debt with a fixed interest rate of 4.48% and a remaining maturity of 33 years; and approximately $18.0 million of bridge financing. The bridge loans consist of a $6.4 million loan that will be refinanced with a permanent mortgage in the fourth quarter of 2012, upon completing the installation of a sprinkler system to a portion of the building. The cost of the sprinkler installation is being paid by the seller. The Company has received a commitment for a 10-year fixed rate non-recourse refinancing of this bridge loan with similar terms to those described above. The remaining $11.6 million bridge loan is for one of the acquired communities that had a recent expansion which opened in August 2012. This community, including the expansion, is 100% occupied and will be eligible for permanent financing within six months. The blended average interest rate on the $50.2 million of debt is approximately 4.50%.
About Capital Senior Living Corporation – CSU
Capital Senior Living Corporation (CSU) is one of the nation’s largest operators of residential communities for senior adults. CSU’s operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living and home care services, to provide residents the opportunity to age in place. The Company currently operates 99 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 13,300 residents.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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