Brookdale Senior Living Announces Acquisition and Financing Transactions

   Brookdale Senior Living Announces Acquisition and Financing Transactions

PR Newswire

NASHVILLE, Tenn., Jan. 15, 2013

NASHVILLE, Tenn., Jan. 15, 2013 /PRNewswire/ -- Brookdale Senior Living Inc.
(NYSE: BKD) (the "Company") today announced that it has recently completed the
acquisition of 12 communities with a total of 871 units for an aggregate
purchase price of $162.1 million, plus customary transaction expenses. The
communities had previously been operated by the Company under long-term leases
that were accounted for as either operating or capital leases.

"Eleven of these communities were acquired under purchase options, which
became exercisable by the end of 2012. These options were negotiated at the
inception of the leases and helped align the interests of the tenant and the
landlord. The economics of these communities built nicely over time and the
purchase options gave us the opportunity to purchase these communities at a
cap rate exceeding 9%, thus harvesting a portion of the improved value. By
replacing escalating lease rates with mortgage financing at today's interest
rates, the transaction is modestly accretive. Ownership of these communities
also allows us to capture the communities' value creation potential going
forward," said Bill Sheriff, Brookdale's Chief Executive Officer.

In a related transaction, the Company obtained a $171.3 million first mortgage
loan secured by nine of the Company's communities, including eight of the
recently-acquired communities. The loan has a ten-year term and bears
interest at a variable rate of 30 day LIBOR plus 259 basis points. In
connection with the transaction, the Company repaid $37.4 million of mortgage
loans scheduled to mature in 2013 and used the remaining loan proceeds to
provide long-term financing for the acquisitions.

About Brookdale Senior Living

Brookdale Senior Living Inc. is a leading owner and operator of senior living
communities throughout the United States. The Company is committed to
providing an exceptional living experience through properties that are
designed, purpose-built and operated to provide the highest-quality service,
care and living accommodations for residents. Currently the Company operates
independent living, assisted living, and dementia-care communities and
continuing care retirement centers, with 647 communities in 36 states and the
ability to serve approximately 67,000 residents. Through its Innovative
Senior Care program, the Company also offers a range of outpatient therapy,
home health and hospice services, primarily to residents of its communities.

Safe Harbor

Certain items in this press release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Those forward-looking statements are subject to various risks and
uncertainties and include all statements that are not historical statements of
fact and those regarding our intent, belief or expectations, including, but
not limited to, all statements regarding our expectations concerning the
future performance of the recently acquired communities and the effect of the
acquisitions on our financial results, our ability to secure financing or
repay, replace or extend existing debt at or prior to maturity and our
expectations regarding financings and refinancings of assets and their effect
on our results. Words such as "expect(s)" and similar expressions are
intended to identify such forward-looking statements. These statements are
based on management's current expectations and beliefs and are subject to a
number of factors that could lead to actual results materially different from
those described in the forward-looking statements. We can give no assurance
that our expectations will be attained. Factors that could cause actual
results to differ materially from our expectations include, but are not
limited to, the risk that we will be unable to improve the communities'
results of operations and cash flows, the risk associated with the current
global economic crisis and its impact upon capital markets and liquidity, the
risk that we may not be able to extend (or refinance) debt as it matures, the
possibilities that changes in the capital markets, including changes in
interest rates and/or credit spreads, or other factors could make financing
more expensive or unavailable to us, our ability to obtain additional capital
on terms acceptable to us, and the other risks detailed from time to time in
our filings with the Securities and Exchange Commission. Such forward-looking
statements speak only as of the date of this press release. We expressly
disclaim any obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in our
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based.

SOURCE Brookdale Senior Living Inc.

Website: http://www.brookdaleliving.com
Contact: Brookdale Senior Living Inc., Ross Roadman, +1-615-564-8104
 
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