Strawberry Fields REIT LLC (Strawberry Fields), an owner and lessor of nursing homes, long-term acute care hospital facilities and medical office buildings in the Midwestern and Southern U.S., today announced it has raised $67.1 million in Bond Series B for a net amount of $65.6 million, after raising costs of $1.5 million.
The debentures are repayable in three annual payments on March 31 of each of the years 2020 through 2022, in a manner that each of the first two payments on account of the principal will represent 10% of the principal of the par value of the debentures, and the last payment on account of the principal will represent 80% of the principal of the par value of the debentures. The average duration of the debentures is 3.52 years.
“We were pleased to issue this new bond as it will enable us to pay down bank debt and continue to execute on our strategy to acquire and improve nursing homes, and long-term acute care hospital facilities,” commented Moishe Gubin, CEO of Strawberry Fields.
The debentures are linked to the NIS, they bear nominal interest of 4.95%. The first interest payment will be on September 30, 2018 and, subsequently, the interest will be paid once each half-year.
The debentures are listed and traded in Israel and secured by first lien on 16 of the Company’s buildings with an appraised value of $104 million. Strawberry Fields REIT will use $45.6 million to pay off bank debt, $3.1 million will be used to cover issuance cost and interest cushion with the trustee, and $18.6 million will not be converted from shekel to dollar, and will be transferred to the trustee to be used for the coming payment on Bond Series A.
Among the lenders one can find the biggest institutional investors in Israel like Harel Insurance, Meitav Dash, Psagot and others.
Strawberry Fields owns 59 facilities located in Illinois, Indiana, Ohio, Texas, Michigan Tennessee, Kentucky and Oklahoma.
Apex Issuances acted as the lead underwriter for the offer. Apex is one of the leading underwriters in Israel and specializes in public offerings on the Tel Aviv Stock Exchange for US based real estate companies.
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