Brookdale Senior Living Announces Acquisition and Financing Transactions

Brookdale Senior Living Inc.

today announced that it has recently completed the acquisition of nine communities with a total of 1,295 units for an aggregate purchase price of $121.3 million, plus customary transaction expenses. The communities had previously been operated by the Company under long-term leases that were accounted for as operating leases The Company financed the transaction with $77.9 million of first mortgage financing secured by seven of the communities and $15.0 million of seller-financing secured by two of the communities. The $77.9 million first mortgage facility has a ten year term. 75% of the facility bears interest at a fixed rate of 4.21% and the remaining 25% of the facility bears interest at a variable rate of 30 day LIBOR plus a margin of 276 basis points. The $15.0 million mortgage loan has a two year term and bears interest at a fixed rate of 7.0%. Additionally, the Company announced that it had obtained a $63.0 million first mortgage loan secured by one of the Company's communities. The loan has a five year term and bears interest at a variable rate of 30 day LIBOR plus 300 basis points. In connection with the transaction, the Company repaid a $62.8 million first mortgage loan that was scheduled to mature in 2013. The refinancing transaction represents another step in the process of the Company's plan for addressing its 2013 debt maturities.