contemporary healthcare capital product solutions
contemporary healthcare capital product solutions

»PRODUCTS - Solutions

Acquisitions

Whether you are acquiring a business backed by real estate or businesses that do own the bricks and sticks, our funds can provide the necessary capital to close. For long-term care/senior housing companies, the funds can be used separately or in combination to provide the financing. For example, to the extent that a borrower needs 100% financing and wants one lender/investor, our funds provide all the capital needed.

The products can be prepaid and are therefore a good alternative to REIT financing, since the borrower is able to use the funds as a bridge and keep the upside. If the borrower has a relationship with a senior lender and/or has its own equity, our products work well with other lenders'/investors' products.

Finally, if there is assumable senior debt in place that is attractively priced or can not be prepaid, such as FHA insured debt or conduit debt, our mezzanine and equity funds can be used to layer on top of the existing senior debt.

For healthcare companies that are looking to acquire, our mezzanine and/or equity funds are excellent complements to A/R lenders or other senior-term lenders or as standalone financing. As standalone financing, our funds provide all of the capital necessary to complete the acquisition. This works particularly well when the eligible A/R base is too small for commercial A/R lenders or if senior financing is unavailable for the asset class. Our equity funds are redeemable at a stated IRR, so there is a way to repay our investment, while you capture the upside.

All funds can close quickly to meet your acquisition timetable. With our knowledgeable staff, we can deliver a commitment in under 30 days and in some cases can commit and close in that time period.

Refinancing/Recapitalization

As with the acquisition scenarios, you can use our funds in a variety of combinations to refinance existing debt, provide cash out or buy out a partner.

For facility-backed businesses, we offer bridge and term financing. For example, a borrower can "Bridge to HUD" using our senior and mezzanine funds by leveraging the facility to 85% LTV or higher. The borrower can free up otherwise trapped equity (since HUD will not allow cash out financing), use the cash today and then refinance with HUD at a later date (usually within a year). The end result is that the borrower has monetized equity at a very inexpensive cost on a non-recourse basis (HUD terms). Another example is to use our mezzanine or equity funds to layer on top of existing debt to monetize equity.

Leasehold Financing

Using either our mezzanine or equity funds, borrowers can use their leasehold interests as collateral to make acquisitions, renovate, construct or for other corporate purposes.

Construction Financing

Both the mezzanine and equity funds can be used to finance construction and renovations. The funds allow a borrower to source a construction lender for the senior mortgage and can be used for pre-development needs, construction/renovation, as well as working capital for the start-up period.

Short Term Equity

Many operators today have short term equity needs that require fast execution. These equity needs could be (but are not limited to), buying out a partner, renovating a facility, adding a wing to a building, recapitalizing a transaction where there is a current maturity due, acquiring a building that requires a turnaround of operations, etc. CHC's new product is targeting those operators who have a vision on how to utilize this equity and redeem that equity at a fixed rate of return within 12 to 24 months of closing. Given the short term nature of the product, CHC will offer extremely attractive yield requirements to the user of this product. The user of this product therefore is incentivized to improve value quickly and then work with CHC to redeem the product, thereby capturing the upside value for themselves. This product is specifically designed for those experienced in operating healthcare facilities, not to real estate speculators or pure developers.

CHC will offer this product based on a minimum of $1 million up to $15 million plus. CHC retains its current product lineup which allows for longer term investment horizons.

Bridge Loan Programs

Our fixed-rate bridge loans are appropriate for acquisition, refinancing and recapitalization for long-term care and senior living facility-based providers. This product can also be used to monetize equity prior to financing with HUD. Loans are available up to 100% loan-to-cost.

Other Creative Ideas

Our funds can be used in a variety of creative ways. We have financed captive insurance programs, the start-up of pharmacies, bought out venture capital partners, financed turnaround situations and funded accounts receivable needs. Please call to discuss the possibility of using our funds to help you meet your financing needs.

 
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