Capital Senior Living Corporation Completes the Refinancing of Four Communities.DALLAS -- Capital Senior Living Corporation (the "Company") (NYSE NYSE See: New York Stock Exchange :CSU See DSU/CSU. 1. CSU - California State University. 2. CSU - Cleveland State University. 3. CSU - Channel Service Unit. ), one of the country's largest operators of senior living communities, today announced it has completed the refinancing of four communities with GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage ("GMAC"). The four communities, each known as Independence Village, are located in east Lansing East Lansing, city (1990 pop. 50,677), Ingham co., S central Mich., a suburb of Lansing, on the Red Cedar River; inc. 1907. The city was first known as College Park, but was renamed when it was incorporated. , Mich., Peoria, Ill., and Raleigh and Winston-Salem, N.C. The properties have approximately 630 units of independent living and a combined resident capacity of nearly 700. The new loans on the four properties total $39,150,000, equal to approximately 70% of their appraised value An appraised value (USA) or mortgage valuation (Australia) pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer. It is usually used as a pre-qualification & risk-based pricing factor related to the issuance of mortgage loans by a of $56.0 million. The appraised value equates to approximately $89,000 per unit. Occupancy on the portfolio is approximately 83%. The interest rate on these properties is fixed for the entire ten-year term of the loan at the rate of 5.46%. Monthly principal and interest payments will be based on a 25-year amortization schedule. These new loans replace approximately $34.0 million of debt previously financed through GMAC at variable interest rates equal to LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 240 basis points (approximately 5.83% at the present time). The loans were due to mature in September 2005. This transaction increased the Company's available cash by approximately $4.6 million, net of fees and expenses. "We are pleased with the confidence that GMAC continues to demonstrate in the senior living industry and our Company in particular," commented James A. Stroud This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Chairman of the Company. "With this attractive fixed rate financing, we were able to increase our cash position by nearly $4.6 million, reduce the interest rate by nearly 40 basis points from the present variable rate and fix it below five and one-half percent for the next decade." "This transaction is part of our strategy to convert our variable rate debt to long-term fixed rate debt at attractive terms to the Company," added Lawrence A. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Chief Executive Officer. "We plan to continue to convert our variable rate loans to fixed rates as our properties qualify for fixed rate debt." ABOUT THE COMPANY Capital Senior Living Corporation is one of the nation's largest operators of residential communities for senior adults. The Company's operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and home care services, to provide residents the opportunity to age in place. The Company currently operates 54 senior living communities in 20 states with an aggregate capacity of approximately 8,700 residents, including 39 senior living communities which the Company owns or in which the Company has an ownership interest, and 15 communities it manages for third parties. In the communities operated by the company, 84 percent of residents live independently and 16 percent of residents require assistance with activities of daily living. The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company's ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to licensure, availability of insurance at commercially reasonable rates, and changes in accounting principles and interpretations among others, and other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission. Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 or Matt Hayden, Hayden Communications, Inc. at 858-704-5065 for more information. |
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