Brookdale Completes Financing Transaction

NASHVILLE, TN - Brookdale Senior Living Inc. announced today that the Company obtained a 7-year $437.8 million first mortgage credit facility from Oak Grove Capital through the Fannie Mae DUS program.  75% of the facility bears interest at a fixed rate of 4.25% and the remaining 25% bears interest at a variable rate of 30 day LIBOR plus a margin of 182 basis points.  The facility amount is based on a 55% loan-to-value ratio applied to the appraised value of the secured properties and includes certain substitution and "borrow-up" provisions, as well as capacity for expansion.  In connection with the transaction, the Company simultaneously repaid $445.2 million of mortgage debt which was scheduled to mature in February and August 2012.  

Bill Sheriff, Brookdale's CEO, commented, "We have now eliminated all of the Company's 2012 mortgage debt maturities (other than periodic, scheduled principal amortization) and a portion of the Company's 2013 maturities. Since the beginning of the year, we have repaid $845.5 million of debt and obtained new financings of $782.0 million, for a net reduction of $63.4 million while also unencumbering assets that can be used to add borrowing capacity under the Company's secured line of credit.  Moreover, through the use of convertible senior notes and lower leverage mortgage debt, and despite today's extremely low variable rates, we have managed to reduce our interest cost by approximately $1.7 million per year while replacing debt that was primarily variable with debt that is mostly fixed."

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 owns and operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 557 communities in 33 states and the ability to serve approximately 51,000 residents.