2014

Brookdale Senior Living Announces Acquisition and Financing Transactions

NASHVILLE, Tenn., Jan. 15, 2013 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) (the "Company") today announced that it has recently completed the acquisition of 12 communities with a total of 871 units for an aggregate purchase price of $162.1 million, plus customary transaction expenses. The communities had previously been operated by the Company under long-term leases that were accounted for as either operating or capital leases.

"Eleven of these communities were acquired under purchase options, which became exercisable by the end of 2012.  These options were negotiated at the inception of the leases and helped align the interests of the tenant and the landlord.  The economics of these communities built nicely over time and the purchase options gave us the opportunity to purchase these communities at a cap rate exceeding 9%, thus harvesting a portion of the improved value.  By replacing escalating lease rates with mortgage financing at today's interest rates, the transaction is modestly accretive.  Ownership of these communities also allows us to capture the communities' value creation potential going forward," said Bill Sheriff, Brookdale's Chief Executive Officer.

In a related transaction, the Company obtained a $171.3 million first mortgage loan secured by nine of the Company's communities, including eight of the recently-acquired communities.  The loan has a ten-year term and bears interest at a variable rate of 30 day LIBOR plus 259 basis points.  In connection with the transaction, the Company repaid $37.4 million of mortgage loans scheduled to mature in 2013 and used the remaining loan proceeds to provide long-term financing for the acquisitions. 

About Brookdale Senior Living

Brookdale Senior Living Inc. is a leading owner and operator of senior living communities throughout the United States.  The Company is committed to providing an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents.  Currently the Company operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 647 communities in 36 states and the ability to serve approximately 67,000 residents.  Through its Innovative Senior Care program, the Company also offers a range of outpatient therapy, home health and hospice services, primarily to residents of its communities.

Safe Harbor

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, all statements regarding our expectations concerning the future performance of the recently acquired communities and the effect of the acquisitions on our financial results, our ability to secure financing or repay, replace or extend existing debt at or prior to maturity and our expectations regarding financings and refinancings of assets and their effect on our results.  Words such as "expect(s)" and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. We can give no assurance that our expectations will be attained. Factors that could cause actual results to differ materially from our expectations include, but are not limited to, the risk that we will be unable to improve the communities' results of operations and cash flows, the risk associated with the current global economic crisis and its impact upon capital markets and liquidity, the risk that we may not be able to extend (or refinance) debt as it matures, the possibilities that changes in the capital markets, including changes in interest rates and/or credit spreads, or other factors could make financing more expensive or unavailable to us, our ability to obtain additional capital on terms acceptable to us, and the other risks detailed from time to time in our filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

SOURCE Brookdale Senior Living Inc.



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http://www.brookdaleliving.com

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