New Senior Announces Completion of $435 Million Senior Housing Acquisition and Closing of $670 Million Freddie Mac Financing
30 March 2015 - 11:50PM
Business Wire
New Senior Investment Group Inc. (“New Senior” or the “Company”)
(NYSE: SNR) announced today that it has completed the previously
announced acquisition of 17 private pay, independent living senior
housing properties from affiliates of Hawthorn Retirement Group for
approximately $435 million (the “Hawthorn Acquisition”). The
portfolio is 100% private pay, contains 2,082 units located across
10 states and had an average occupancy rate of 92.6% for February
2015. The portfolio will be operated by Holiday Retirement, and the
Company expects the portfolio to generate an NOI yield of
approximately 6.3%. The acquisition was funded with cash on hand
and proceeds from a first mortgage loan.
The Company also completed a $670 million first mortgage loan
(the “Loan”) secured by 52 senior housing properties with Freddie
Mac through Walker & Dunlop. The Loan bears interest at LIBOR +
234bps and has a seven year maturity. Proceeds from the Loan were
used to refinance existing floating rate debt and to fund
acquisitions, including the Hawthorn Acquisition.
”We are excited to add to our portfolio this collection of
high-quality, independent living senior housing assets, which will
further increase our private pay exposure,” New Senior Chief
Executive Officer Susan Givens said. “With an average asset age of
seven years and strong occupancy of 92.6%, we expect continued
strong growth from this portfolio. In addition, we continue to make
progress toward improving our capital structure with New Senior’s
$670 million financing with Freddie Mac. The financing was executed
at a very attractive rate and lowers the financing cost on our
existing debt while also providing attractive financing terms for
our new acquisitions.”
ABOUT NEW SENIOR
New Senior is a real estate investment trust focused on
investing in senior housing properties across the United States.
The Company is one of the largest owners of senior housing
properties and currently owns 121 properties in 31 states. New
Senior is managed by an affiliate of Fortress Investment Group LLC,
a global investment management firm. More information about New
Senior can be found at www.newseniorinv.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain items in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements regarding the expected NOI
yield and continued growth of the Hawthorn Acquisition. These
statements are not historical facts. They represent management’s
current expectations regarding future events and are subject to a
number of trends and uncertainties, many of which are beyond our
control, that could cause actual results to differ materially from
those described in the forward-looking statements. Accordingly, you
should not place undue reliance on any forward-looking statements
contained herein. For a discussion of some of the risks and
important factors that could affect such forward-looking
statements, see the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s Annual Report on Form 10-K,
which is available on the Company’s website (www.newseniorinv.com).
New risks and uncertainties emerge from time to time, and it is not
possible for New Senior to predict or assess the impact of every
factor that may cause its actual results to differ from those
contained in any forward-looking statements. Forward-looking
statements contained herein speak only as of the date of this press
release, and New Senior expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in New Senior's
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based.
New Senior Investment Group Inc.Investor Relations:David Smith,
212-479-3140
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