Subsequent Events |
6 Months Ended |
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Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company evaluates subsequent events in accordance with ASC 855, Subsequent Events. The Company evaluates subsequent events up until the date the condensed consolidated financial statements are issued. Senior Unsecured Notes Payable On July 1, 2021 (the “Redemption Date”), the Issuers redeemed all $300.0 million aggregate principal amount of the 2025 Notes at a redemption price equal to 102.625% of the principal amount of the 2025 Notes, plus accrued and unpaid interest thereon up to, but not including, the Redemption Date. During the third quarter of 2021, the Company recorded a loss on the extinguishment of debt of $10.8 million, including a prepayment penalty of approximately $7.9 million and an approximately $2.9 million write-off of deferred financing costs associated with the redemption of the 2025 Notes. Recent Acquisition and Amended Lease Agreement In August 2021, the Company acquired two skilled nursing facilities for approximately $32.5 million, which includes estimated capitalized acquisition costs. The facilities were leased to affiliates of Ensign. In conjunction with the acquisition of the two facilities, the Company amended and extended the initial term of an existing triple-net master lease with Ensign to include the two skilled nursing facilities. The Ensign lease, as amended, has a remaining initial term of approximately 17 years, with three five-year renewal options and CPI-based rent escalators. Annual cash rent under the amended lease increased by approximately $2.2 million, with GAAP rent increasing by $2.5 million due to a $5.0 million prepayment of rent made at closing, which will be amortized on a straight-line basis over the remaining lease term. The Operating Partnership drew on the Revolving Facility to fund the acquisition. Asset Held for Sale In August 2021, the Company met the held for sale criteria on one assisted living facility operated by affiliates of Noble Senior Services, and is in the process of estimating its fair value, which is expected to be below the net carrying value of $4.9 million. The associated impairment loss is expected to be recorded in the quarter ending September 30, 2021.
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