Sabra Originates $11 Million Mortgage Loan With Purchase Option
IRVINE, Calif., June 26, 2012 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) today announced the origination of an $11.0 million mortgage loan. On June 22, 2012, we entered into an $11.0 million mortgage loan agreement secured by a first trust deed on a 125-bed skilled nursing facility in Texas that was built in 2010 ("Onion Creek Mortgage Loan") with affiliates of Meridian Equity Investors, L.P. (the "Borrowers"). The Onion Creek Mortgage Loan has a five-year term, bears interest at a fixed rate of 8.5% per annum and cannot be prepaid during the first three years of the loan term. In addition, we have an option to purchase and the Borrowers have an option to sell us the facility securing the Onion Creek Mortgage Loan from July 1, 2013 through the time the loan is repaid for between $12.5 million and $14.5 million, depending on the annualized earnings before interest, taxes, depreciation, amortization and rent ("EBITDAR") of the facility for the three month period preceding the exercise option date; however, in no event can the Borrowers require us to purchase the property if the three month annualized EBITDAR is below $1.7 million. The facility was built in 2010 and is operated by Senior Care Centers ("SCC"), which operates 32 nursing facilities in Texas. Commenting on the transaction, Rick Matros, CEO and Chairman, said, "The Onion Creek Mortgage Loan is yet another example of repeat business with a relationship we have developed in the last year. Like our previous deal with Meridian, this is an investment that should generate an attractive yield for our shareholders while providing us with the flexibility to purchase the property and add to our increasing list of operator relationships. We are excited to continue growing our relationship with the Meridian and SCC teams."
Sabra Health Care REIT, Inc. (Nasdaq: SBRA), a Maryland corporation, is a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States. As of June 22, 2012, and after giving effect to the Onion Creek Mortgage Loan, Sabra's investment portfolio included 103 properties (consisting of (i) 93 skilled nursing/post-acute facilities, (ii) nine senior housing facilities, and (iii) one acute care hospital), one mortgage loan investment and one mezzanine loan investment. As of June 22, 2012, Sabra's properties were located in 25 states and included 11,444 licensed beds.
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FORWARD-LOOKING STATEMENTS SAFE HARBOR
This release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified, without limitation, by the use of "expects," "believes," "intends," "should" or comparable terms or the negative thereof. Forward-looking statements in this release include all statements regarding our expectations concerning our recent investment and the future performance of this investment.
Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: our dependence on Sun Healthcare Group, Inc. ("Sun") until we are able to further diversify our portfolio; our dependence on the operating success of our tenants; changes in general economic conditions and volatility in financial and credit markets; the dependence of our tenants on reimbursement from governmental and other third-party payors; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to make acquisitions, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; our ability to raise capital through equity financings; the relatively illiquid nature of real estate investments; competitive conditions in our industry; the loss of key management personnel or other employees; the impact of litigation and rising insurance costs on the business of our tenants; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; our ability to qualify and maintain our status as a REIT; compliance with REIT requirements and certain tax matters related to status as a REIT; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission (the "SEC"), especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. We assume no, and hereby disclaim any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.
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Source: Sabra Health Care REIT, Inc. 2012 GlobeNewswire, Inc.