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LTC Providers Make Deals

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Prudential Investment Management Inc. is making up to $100 million in additional financing available to a long-term care investment organization.

Prudential Investment Management Inc. is making up to $100 million in additional financing available to a long-term care investment organization.

LTC Properties Inc., Westlake Village, Calif. (NYSE:LTC), says it arranged for the financing from Prudential Investment Management by amending a note purchase and private shelf agreement.

LTC Properties can get the funds by issuing senior unsecured promissory notes to Prudential Investment Management, Prudential Investment Management affiliates, or Prudential Investment Management managed accounts.

The agreement will last for 3 years.

Any notes issued will have fixed rates.

The final maturity dates will be subject to agreement by LTC Properties and Prudential Investment Management, according to LTC Properties.

The maximum average life of a note issued under the agreement will be 8 years.

Prudential Investment Management is a unit of Prudential Financial Inc., Newark, N.J. (NYSE:PRU).

LTC Properties is a self-administered real estate investment trust that invests mainly in LTC facilities and other health care-related facilities through mortgage loans, facility lease transactions and other investments.

Earlier this month, LTC Properties announced that it had acquired a 196-bed skilled nursing facility in Pasadena, Texas, through a sale-lease back transaction, for a purchase price of $15.5 million.

The company also paid $844,000 for a vacant lot in Amarillo, Texas, and it agreed to provide up to $8.25 million in financing for the construction of a 120-bed skilled nursing facility that is supposed to replace an existing 90-bed skilled nursing facility.

Meanwhile, another player in the LTC facility market, Rollins-Nelson Healthcare Management Company Inc., Torrance, Calif., has arranged for a $20 million senior secured credit facility from Oxford Finance L.L.C., Alexandria, Va.

Rollins-Nelson will use the money for working capital, and to acquire a skilled nursing facility in Southern California, Oxford Finance says.

Rollins-Nelson runs 6 skilled nursing facilities and a resident care facility in Southern California. The facilities have a total of 908 beds.

Capital Senior Living Corp., Dallas (NYSE:CSU), a senior living community operator, has acquired two communities in South Carolina and a third in North Carolina for a total of $30 million.

The facilities offer independent living housing, assisted living housing, and memory care. They have an average occupancy rate of 92% and $2,900 in average monthly rents.

Financing for the deals includes about $22 million in 10-year fixed rate debt with an interest rate of 4.92%.


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