Emeritus Refinances Mortgage Debt
SEATTLE–(BUSINESS WIRE)–Emeritus Corporation (NYSE: ESC), a national provider of assisted living and related services to senior citizens, announced today that it has completed the refinancing of seven communities with Freddie Mac for $36.3 million at a fixed rate of 6.05% and a term of 10 years.
In addition, the Company paid down $20.1 million of existing debt with Capmark using the proceeds from the Freddie Mac refinancing and extended the remaining balance of $72.7 million from September 2009 to January 2012. The initial interest rate for the Capmark debt will be 6.5% and will require initial annual principal reductions of $3.0 million. Annual interest expense will increase approximately $3.0 million as a result of these transactions.
Mr. Dan Baty, Chairman and Co-CEO of Emeritus stated, “With our strong cash position and the extension of maturity dates, our balance sheet continues to improve. We have no material maturities for the next three years.”
ABOUT THE COMPANY
Emeritus Corporation is a national provider of assisted living and Alzheimer’s and related dementia care services to seniors. Emeritus is one of the largest and most experienced operators of freestanding assisted living communities located throughout the United States. These communities provide a residential housing alternative for senior citizens who need assistance with the activities of daily living, with an emphasis on personal care services, which provides support to the residents in the aging process. Emeritus currently operates 302 communities in 36 states representing capacity of approximately 26,700 units and 31,600 residents as of the date of this press release. Our common stock is traded on the New York Stock Exchange under the symbol ESC, and our home page can be found on the Internet at www.emeritus.com.