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Brookdale Senior Living Sells 20% Stake in Joint Venture, Progresses on Financing Transaction

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Zara Nwosu
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Brookdale Senior Living Sells 20% Stake in Joint Venture, Progresses on Financing Transaction

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Brookdale Senior Living, a company known for operating and managing 672 senior living communities across 41 states, has recently sold its 20% stake in the home health, hospice, and therapy joint venture with HCA Healthcare. This move comes as part of Brookdale's strategic decisions to improve its financial standing and focus on its core services.

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Stake Sale and its Implications

The 20% stake was sold to an undisclosed buyer for a total of $27 million. This decision was primarily influenced by the struggles with occupancy rates in Brookdale's senior living communities during the COVID-19 pandemic. Prior to this, Brookdale was one of the largest home health providers in the country, but the pandemic-induced challenges forced the company to offload this segment. In a similar move in November 2021, HCA Healthcare sold 47 Brookdale Health Care Services agencies to Lafayette, La.-based home health firm LHC Group.

Financial Transactions and Debt Maturities

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Alongside the stake sale, Brookdale has also made significant strides on a financing transaction involving 11 of its unencumbered owned communities. This move is expected to be completed in the coming months and reflects positive strides made in 2023, as it clears the company's debt maturities until 2025. Brookdale has completed two financing transactions to refinance all remaining 2024 debt maturities. The first transaction was an amendment to their revolving credit agreement with Capital One, which provided an expanded commitment of up to $100 million. The second transaction consisted of a $180 million loan under their master credit facility agreement.

Brookdale's Future Prospects

The company's executive vice president and CFO, Dawn Kussow, expressed confidence in the company's strong liquidity position. These moves highlight Brookdale's strategic financial management and its commitment to maintaining a strong and stable financial standing amidst industry challenges. The company's next debt maturity without extension options is in September 2025, which suggests a secure financial future for the company in the coming years.

Brookdale's Response to COVID-19 and Future Directions

Brookdale Senior Living provides various options for senior living, including independent living, assisted living, memory care, skilled nursing, and in-home services. In response to the COVID-19 pandemic, they have shown resilience and adaptability. The company's President and CEO, Lucinda M. Baier, authored a book called 'Heroes Work Here', discussing their response to COVID-19. They also offer a webcast series called 'In the Know', providing valuable insights into the senior living industry. As Brookdale navigates through the post-pandemic landscape, it continues to explore avenues for growth and improvement, while maintaining its commitment to providing quality senior care.

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