Profit Improvements Greased Skids for Refinancing

Industry: Healthcare

SeniorCare Group

Tampa, Florida

Challenge

Assisted Living Facilities. 25 locations. $120 million sales.$60 million debt.


  • The assisted living facility was midway through various capital expenditure projects when the economic slowdown began
  • $59 million of mortgage debt outstanding with $19 million due within 2 years
  • $37 million of Long Term Debt Obligations
  • Free Cash Flow from Operations of $6 million did not cover $16 million of annual debt service

Solution

  • Met with senior management to understand significant developments and existing initiatives to improve financial performance while decreasing financial leverage
  • Improve Sales Mix and Reimbursement rates to increase profitability
  • Negotiate with Mortgage Lenders and Debt Holders to extend terms and defer payments
  • Explored sale of real estate to investors
  • Cease dividend payments to investors
  • Replace TIC investors and refinance with SBA

Results

  • Increased Net Patient Revenue by 7.6%
  • Managed the application and compliance process to refinance
  • Investors allowed company to work through refinancing by escrowing funds