SBRA - Extendicare to sell retirement living operations to SiennaSabra for $307.5M

Extendicare (OTCPK:EXETF) will sell its retirement living operations to SiennaSabra, a partnership formed between Sienna Senior Living (OTCPK:LWSCF) and SABRA Healthcare REIT (NASDAQ:SBRA), for $307.5M. The transaction is structured on a debt-free basis, with existing debt associated with the portfolio of ~$172.4M, as well as estimated debt prepayment costs of ~$6.3M, being repaid at closing from transaction proceeds. The implied realized capitalization rate on stabilized net operating income for the transaction is ~6%. The net proceeds to be realized on the sale, net of debt repayments, taxes, certain closing adjustments and transactions costs, are estimated to be ~$115M. The retirement living operations comprise of ~1K retirement living suites across 11 retirement communities in Ontario and Saskatchewan. The transaction is expected to close in Q2 of 2022. “... we are repositioning Extendicare to focus on growth in long-term care and home health care segments where we can leverage our deep expertise and scale

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Extendicare to sell retirement living operations to SiennaSabra for $307.5M