Brookdale Senior Living announced a $600 million refinancing package that repaid $350 million of its 2026 mortgage debt and $200 million of its 2027 mortgage debt, moving a substantial portion of the company’s debt to fixed‑rate terms.
The shift to fixed‑rate debt reduces Brookdale’s exposure to rising interest rates, providing greater predictability for future cash‑flow planning. Management noted that the new blended interest rate is comparable to the previous rate, so annual net interest expense is not expected to change materially, but the change in debt structure strengthens the balance sheet by increasing the proportion of fixed‑rate debt.
Brookdale’s refinancing supports its broader transition from a leased to an owner‑operator model. The company had already addressed 2025 debt maturities in prior transactions, and this deal eliminates the remaining 2026‑27 maturities, freeing capital for portfolio optimization and potential acquisitions. The move also signals operational strength that underpins the company’s ability to secure favorable financing terms.
The package was arranged with multiple lenders, including Capital One, Fannie Mae, and Freddie Mac, underscoring the firm’s strong relationships with both agency and commercial lenders. Chief Financial Officer Dawn Kussow said the refinancing “demonstrates Brookdale’s strong relationships with multiple lenders and gives us confidence in our ability to continue to successfully address future mortgage debt maturities in the ordinary course.”
With the debt maturities removed, Brookdale can pursue new acquisitions and continue to optimize its real‑estate portfolio while maintaining financial flexibility. The refinancing positions the company to capitalize on opportunities in a market where demand for senior‑living communities remains robust amid an aging population.
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