Helios Arranges $14MM HUD Loan for 120-bed Skilled Nursing Facility in Dallas, TX

CHICAGO, IL — Helios Healthcare Advisors (“Helios”) announces its role in arranging a $14MM HUD loan for a 120-bed skilled nursing facility (the “Facility”) located in Dallas, TX.

Engaged by the operator (“Borrower”) in 2022, Helios assisted in structuring and arranging a bridge loan to acquire the Facility from the Borrower’s landlord (“Seller”). Recognizing the Borrower’s limited liquidity, relationship with the Seller, and the Facility’s asset value relative to the contract price; Helios proposed a structure that allowed the Borrower to acquire the Facility utilizing a subordinated seller note. This effectively pushed leverage beyond the bridge loan’s advance rate. In conjunction with the closing of the bridge loan, the Borrower and lender began the application process to refinance the bridge and seller note through HUD’s 232/223(f) program.

The HUD refinance closed February 28th, 2023, successfully recapitalizing the bridge and subordinated seller note.

“This transaction effectuated the original roadmap designed to assist an undercapitalized, yet strong operator to acquire the real estate on a facility they had been running successfully, then secure a permanent non-recourse solution that de-risked their position,” stated Jeff Rhodes, Managing Director. “The outcome was a win for all involved including the lender who recognized the vision and was not deterred by the nuances or risk profile of the transaction.”