New Senior Investment Group Inc. (SNR)

[Enterprising Investor]

New Senior Announces Completion of $435 Million Senior Housing Acquisition and Closing of $670 Million Freddie Mac Financing (3/30/15)

NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE: SNR) announced today that it has completed the previously announced acquisition of 17 private pay, independent living senior housing properties from affiliates of Hawthorn Retirement Group for approximately $435 million (the “Hawthorn Acquisition”). The portfolio is 100% private pay, contains 2,082 units located across 10 states and had an average occupancy rate of 92.6% for February 2015. The portfolio will be operated by Holiday Retirement, and the Company expects the portfolio to generate an NOI yield of approximately 6.3%. The acquisition was funded with cash on hand and proceeds from a first mortgage loan.

The Company also completed a $670 million first mortgage loan (the “Loan”) secured by 52 senior housing properties with Freddie Mac through Walker & Dunlop. The Loan bears interest at LIBOR + 234bps and has a seven year maturity. Proceeds from the Loan were used to refinance existing floating rate debt and to fund acquisitions, including the Hawthorn Acquisition.

”We are excited to add to our portfolio this collection of high-quality, independent living senior housing assets, which will further increase our private pay exposure,” New Senior Chief Executive Officer Susan Givens said. “With an average asset age of seven years and strong occupancy of 92.6%, we expect continued strong growth from this portfolio. In addition, we continue to make progress toward improving our capital structure with New Senior’s $670 million financing with Freddie Mac. The financing was executed at a very attractive rate and lowers the financing cost on our existing debt while also providing attractive financing terms for our new acquisitions.”

ABOUT NEW SENIOR

New Senior is a real estate investment trust focused on investing in senior housing properties across the United States. The Company is one of the largest owners of senior housing properties and currently owns 121 properties in 31 states. New Senior is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm. More information about New Senior can be found at www.newseniorinv.com.

http://www.businesswire.com/news/home/20150330005612/en/Senior-Announces-Completion-435-Million-Senior-Housing#.VRlPAYktGUk