Growing East Coast SNF Owner/Operator
Situation: An existing Oxford client was acquiring a large multi-state portfolio of turnaround properties with significant upside opportunity. Since the acquisition was part of a multi-tranche transaction with the seller, the borrower needed to secure funding for the current purchase, and assure the seller that it would have access to additional capital in the future for the remaining purchases. The borrower desired maximum leverage with a flexible structure to support the execution of the turnaround plans.
Solution: Oxford delivered a price-competitive, high-leverage first mortgage acquisition loan, accompanied by a sizeable working capital revolver. A syndication partner with an understanding of the industry was brought in to share the overall exposure and lower capital costs for the borrower. The deal structure included a covenant package that provided flexibility for the borrower to successfully execute its plan.
Regional SNF Owner/Operator
Situation: The borrower had owned a seniors housing facility for six months and had successfully executed the property’s turnaround plan for both expenses and revenues. Using this value creation, the borrower wanted to recapture equity to take advantage of other immediate investment opportunities. The borrower was seeking a deal structure maximizing the equity recapture on a non-recourse basis.
Solution: Oxford assessed the sustainability of the turnaround plan for the recently acquired property, as well as the continued success of other turnaround facilities the buyer owned for a longer period of time. Based on the results of this analysis, Oxford provided a fully non-recourse loan with a tailored covenant structure that supported the required equity recapture.
National Seniors Housing Investor
Situation: The borrower had a dedicated fund used to invest in turnaround properties that will be managed by a leading seniors housing operator. An opportunity arose to acquire a portfolio of memory care facilities, which the borrower’s operating partner had recently converted and were now in lease-up. The borrower wanted a financing package that had minimal recourse requirements and excluded any personal recourse.
Solution: Oxford underwrote the loan based on the operating partner’s track record of leasing up similar assets nationwide. The underwriting analysis incorporated a recently passed rate increase in the state’s waiver program. The Oxford solution included a flexible covenant package, a limited corporate guaranty, and no personal recourse.
Midwest SNF Owner/Operator
Situation: The borrower was the long-term lessee of a skilled nursing portfolio, owned by a national REIT. The lease agreement contained a purchase option with terms favorable to the lessee. The portfolio had steadily improved its performance year-over-year, and the borrower was ready to acquire the group of facilities with a purchase price well below the market value. The borrower was seeking a loan to maximize leverage on a non-recourse basis.
Solution: Over a span of many years, the borrower as a lessee successfully operated the group of skilled nursing facilities owned by the REIT. Oxford’s underwriting of the value of the portfolio was in excess of the purchase option, which supported delivering a 90%+ loan-to-cost funding level.
Provider of Outsourced Geriatric Healthcare
Situation: The borrower had a working capital loan with a large national bank that had become too small and constrictive to support its rapid regional expansion. The borrower needed a new asset-based loan to quickly capitalize on immediate growth opportunities.
Solution: Oxford analyzed and underwrote the borrower’s business plan, billing/collection capabilities, and current and future reimbursement environments. As a result, Oxford provided a revolving line of credit with a substantially larger commitment, along with more leverage and flexibility to support the borrower’s multi-state expansion strategy.