»Glossary -

Glossary of Terms


A number of the terms and abbreviations that appear on this site are defined below for your reference.

A/R:

(Accounts Receivable)

Contemporary Healthcare Capital is very excited to have had the opportunity to provide financing for the development of this facility and assist in their growth.

Borrowers

Within the context of this brochure, the term "Borrowers" is used to collectively describe the group of healthcare and senior living organizations in which the Funds may potentially invest.

CHC

Contemporary Healthcare Capital, LLC, the manager of the Funds:

Contemporary Healthcare Fund I, LP - a mezzanine debt fund
Contemporary Healthcare Senior Lien Fund I, LP
DSCR

(Debt service coverage)

The ratio of a company's cash flow available to pay its debt obligations to the total amount of debt payments required.

Early-stage capital

Funds to be used for purposes such as securing a site for, designing and marketing a CCRC prior to obtaining permanent financing.

FHA

(Federal Housing Administration)

The federal agency in the Department of Housing and Urban Development that issues mortgages.

The Funds

(CHF)

The debt and equity funds managed by Contemporary Healthcare Capital, including:

Contemporary Healthcare Fund I, LP - a mezzanine debt fund
Contemporary Healthcare Senior Lien Fund I, LP

(Department of Housing and Urban Development)

The United States federal department that administers federal programs dealing with better housing and urban renewal; created in 1965.

IRR

(Internal rate of return)

The internal rate of return is the discount rate that results in a net present value of zero for a series of future cash flows. IRR is a discounting cash flow approach to valuing investments.

LTV

(Loan to Value)

LTV is the percentage value for the relationship between the amount of the loan and the value of the property.

Mezzanine Loans

Debt financing that CHF may provide to a Borrower; mezzanine financing is subordinated to senior mortgage loans, both in terms of payment and security position.

Senior Financing

Debt financing that CHF may provide to a Borrower that is in a senior lien position.

Preferred Equity Investments

Capital that CHF may invest in a company on a preferred equity basis; such investments would be subordinate to the company's debt obligations, in terms of priority of payment.

Preferred return

Preferred Equity Investments

A return on capital contributions that must be paid to CHF before Borrowers may make any payments to their common equity holders. Preferred return accrues at a specified annual rate. CHF will attempt to negotiate a preferred return of 8% to 10% payable annually by each Borrower.

REIT

(Real Estate Investment Trust)

An investment trust that owns and manages a pool of commercial properties and mortgages and other real estate assets. Shares can be bought and sold in the stock market.

 
Linkedin
Assisted Living Federation of America
Twitter icon
Investment Funds
Solutions
management
Employment
Investments
Loans
News
Events
Contact us
Loan Application