Daily News: June 27, 2014

HHC Finance Advises $940M Loan Provided by Deutsche Bank

Housing & Healthcare Finance (HHC Finance) recently acted as a special advisor and provided consulting services to Deutsche Bank in a $940 million loan backed by 167 skilled nursing facilities in 19 states, comprising 20,222 licensed beds.

The loan was provided to a subsidiary of Rubin Schron with proceeds used to refinance an existing CMBS loan funded in 2006. The portfolio is master leased to SavaSeniorCare, which is owned by current CEO, Tony Oglesby. HHC Finance provided assistance in various aspects of the underwriting, including, deriving a final underwritten net cash-flow, appraisal review, site visits, preparation of rating agency/investor presentations as well as joining various investor and rating agency calls to lend their healthcare expertise.

Certain members of the HHC Finance team had worked on the original financing of the portfolio as far back as 2004 and the subsequent refinance in 2006; therefore, the HHC Finance team was knowledgeable not only about the assets and the nursing home industry but Sava and Schron as well.

Deutsche Bank is currently in the process of marketing a $550 million A note through a CMBS execution, the remaining portions of the capital stack include a $150 million B note and three mezzanine loans totaling $240 million. The loan was structured as a two-year loan with three one-year extension options providing the flexibility for a HUD take-out.