LOS ANGELES—Dominion Healthcare Financial Corp. has closed a $21.5 million loan deal for two skilled nursing facilities in Oahu, Hawaii. The Los Angeles-based company arranged a combination term loan and a revolving credit facility, which will be used to refinance a current HUD loan, consolidate other debt and provide some working capital.
At an 80 percent LTV, roughly $20 million of the financing collateral was provided by the properties, which have a combined value of $25 million. The final $1.5 million was secured by the facilities’ accounts receivable. The loan has a five-year term based on a 25-year amortization schedule.
The loan was provided by an unnamed private finance company. Dominion Corporation Vice President Loren Thall arranged the new financing.
“This was a good opportunity with a strong sponsor,” said Dominion Healthcare’s President, Paul Horvitz, in a statement. “The remote location did not hinder the making of this loan. In fact, Dominion would consider other opportunities in the Hawaiian Island chain.”
The two facilities have a 95 percent occupancy rate and a combined total of 167 beds.