Eagle Senior Dwelling has accomplished a monetary restructuring to emerge from Chapter 11 chapter safety.
The corporate shaped in 2018, by the acquisition of 16 communities previously operated by Brookdale Senior Dwelling (NYSE: BKD). However occupancy and money circulation challenges have been “tremendously exacerbated” when the Covid-19 pandemic hit, based on courtroom paperwork, and the corporate ultimately filed for Chapter 11.
Now, Eagle Senior Dwelling has accomplished a monetary reorganization “to realize a extra balanced and sustainable capital construction,” based on a press launch issued Thursday, Sept. 8.
As a part of that reorganization, the corporate engaged Blueprint Healthcare Actual Property Advisors to market a group known as Vista Lake, in Florida. That group has been acquired by Atlantis Senior Dwelling, which has a company headquarters in Brooklyn, New York.
The remaining 15 Eagle communities are operated by Greenbrier Senior Dwelling, and stay open with uninterrupted companies.
The restructuring plan additionally contains the funding of about $28.1 million in new cash bond financing for a CapEx fund and an working fund. And Collection 2018 bonds — together with tax exempt bonds totaling about $140.8 million — have been exchanged for brand new Collection 2022 bonds.
“I want to thank our residents and their members of the family for his or her ongoing help, our enterprise companions for his or her endurance, and all of our loyal workers for his or her unwavering arduous work and dedication to offering all residents with the best high quality of care as we now have labored to finish this course of,” stated Todd Topliff, President of American Eagle Delaware Holding Firm LLC. “We’re optimistic about our future.”
Polsinelli was authorized counsel and FTI Consulting was restructuring and monetary advisor to Eagle Senior Dwelling by the Chapter 11 course of.
Eagle Senior Dwelling is way from the one supplier to expertise monetary misery within the midst of Covid-19. Senior residing was “the municipal bond sector most straight harmed by the pandemic,” based on an April 2022 report from Moody’s Investor Companies.
Of 675 bond delinquencies and defaults between April 2020 to March 2022, 24% have been associated to senior residing, Moody’s reported.
