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Sabra Agrees On Terms For The Origination Of A $15.5 Million Mezzanine Loan; Funds Preferred Equity Investments In Two Senior Housing Projects Totaling $6.9 Million

Stocks in this article: SBRA

IRVINE, Calif., July 14, 2014 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) (Nasdaq:SBRAP) announced the completion of two preferred equity investments and the agreement on terms for a mezzanine loan.

Meridian Mezzanine Loan

On July 11, 2014, Sabra agreed to terms on a $15.5 million mezzanine loan (the "Meridian Mezzanine Loan") with affiliates of Meridian ALZ Investors, LLC ("Meridian" or the "Borrower") in connection with the previously announced pipeline agreement with Meridian. The proceeds of the mezzanine loan will be used to repay Sabra's existing preferred equity investment in an affiliate of the Borrower (the "Bee Cave Preferred Equity Investments"), totaling $8.3 million (including accrued and unpaid preferred returns), resulting in a net investment by Sabra of $7.2 million. The Meridian Mezzanine Loan has a three year term and will bear interest at a fixed rate of 11% per annum. It will be secured by the Borrower's equity interests in two memory care facilities and a skilled nursing facility. Commenting on the mezzanine loan investments, Rick Matros, CEO and Chairman, said, "We are pleased to continue our relationship with Meridian and look forward to future deals under our pipeline agreement."

Preferred Equity Investments

In addition, on July 7, 2014, Sabra provided $4.5 million of preferred equity funding to affiliates of Titan Senior Living, LLC for the construction of a 113-unit assisted living facility (75 assisted living units and 38 memory care units) outside of San Antonio, Texas. The preferred equity investment provides for an annual 10.0% preferred return and a purchase option which may be exercised at any time following the earlier to occur of (i) the achievement of 90% occupancy for three consecutive months, or (ii) twenty-four months following the date a certificate of occupancy is issued for the facility.

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