National Health Investors To Buy Eight Communities For $476 Mln

(RTTNews) - National Health Investors, Inc. (NHI) Monday said it has signed a definitive asset purchase agreement to acquire eight communities for a purchase price of $476 million. The acquisition is expected to close by December 31.

Following the closing of the deal, the eight communities will be leased to Senior Living Communities, LLC after a 15-year master lease. They will continue to be managed by an affiliate of Senior Living Communities.

The lease equates to an initial gross cash yield of 6.51 percent of the purchase price and has annual escalators of 4 percent in years two through four and annual escalators thereafter of 3 percent.

In connection with the acquisition, NHI expects to provide a $15 million working capital line of credit to Senior Living Communities.

Borrowings under this facility will be used to finance construction projects within the Senior Living Communities Portfolio, including building additional units at several of the communities in the Portfolio.

Separately, the firm said it has commenced an underwritten public offering of 3.5 million shares of its common stock. The underwriters are expected to be granted a 30-day option to purchase up to an additional 525,000 shares.

The company plans to use the net proceeds from the offering to fund a portion of the $476 million purchase price of its pending acquisition of the Senior Living Communities Portfolio.