Stock Market Thread - ALL COMBINED
- Thread starter vinnie
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Brookdale Senior Living To Pay $204M For Sunrise Properties
Last update: 10/9/2009 7:29:14 AM
DOW JONES NEWSWIRES
Brookdale Senior Living Inc. (BKD) agreed Friday to acquire 21 facilities from affiliates of Sunrise Senior Living Inc. (SRZ) for $204 million.
The news sent shares of Sunrise up 6.1% to $3.50 in light premarket trading. Brookdale shares were inactive at $19.06. Sunrise's stock has doubled in 2009, but remains 53% below a year earlier as the company has been plagued by balance sheet issues after over-expansion in the last decade. Investors have been keeping a close eye on the company's debt and liquidity.
The properties in the deal have a combined 1,389 units, nearly all being either assisted living or Alzheimer's units. They are located in ll states.
Brookdale Chief Executive Bill Sheriff said, "We see significant upside potential in these assets," with more than 80% of the units in markets "we can immediately serve with therapy and 55% with home health." The deal, which is set to close next month, is expected to boost next year's earnings.
Financing will be through $134 million in mortgage debt, much through the assumption of current loans, and the rest from cash on hand.
Brookdale, which owns 546 communities in 35 states, provides services to some 52,000 residents. Its shares rallied in August after the largest publicly traded operator of senior living communities in the U.S. reported better-than-expected earnings for the second quarter, said it initiated talks with its lenders to refinance or extend certain debts, and said it saw improvement in some of its businesses.
Sunrise expects the nearly $60 million of proceeds it receives from the sale to go toward debt repayment, a prime allocation of funds for companies that have been making divestitures or raising capital through the sale of stock and/or debt. It expects to record a $7 million write-down in the third quarter on five of the to-be-sold properties and a $50 million gain upon closing.
Sunrise CEO Mark Ordan called the deal "another important step in our restructuring process and provides us with needed funds to pay down our bank line and with additional working capital." The company had 415 communities in the U.S., Canada, Germany and U.K. as of June 30 with a combined 42,750 units.
Sunrise had a quarterly loss in the second quarter on write-downs from its German holdings.
-By Kevin Kingsbury; Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com
Brookdale Senior Living To Pay $204M For Sunrise Properties
Last update: 10/9/2009 7:29:14 AM
DOW JONES NEWSWIRES
Brookdale Senior Living Inc. (BKD) agreed Friday to acquire 21 facilities from affiliates of Sunrise Senior Living Inc. (SRZ) for $204 million.
The news sent shares of Sunrise up 6.1% to $3.50 in light premarket trading. Brookdale shares were inactive at $19.06. Sunrise's stock has doubled in 2009, but remains 53% below a year earlier as the company has been plagued by balance sheet issues after over-expansion in the last decade. Investors have been keeping a close eye on the company's debt and liquidity.
The properties in the deal have a combined 1,389 units, nearly all being either assisted living or Alzheimer's units. They are located in ll states.
Brookdale Chief Executive Bill Sheriff said, "We see significant upside potential in these assets," with more than 80% of the units in markets "we can immediately serve with therapy and 55% with home health." The deal, which is set to close next month, is expected to boost next year's earnings.
Financing will be through $134 million in mortgage debt, much through the assumption of current loans, and the rest from cash on hand.
Brookdale, which owns 546 communities in 35 states, provides services to some 52,000 residents. Its shares rallied in August after the largest publicly traded operator of senior living communities in the U.S. reported better-than-expected earnings for the second quarter, said it initiated talks with its lenders to refinance or extend certain debts, and said it saw improvement in some of its businesses.
Sunrise expects the nearly $60 million of proceeds it receives from the sale to go toward debt repayment, a prime allocation of funds for companies that have been making divestitures or raising capital through the sale of stock and/or debt. It expects to record a $7 million write-down in the third quarter on five of the to-be-sold properties and a $50 million gain upon closing.
Sunrise CEO Mark Ordan called the deal "another important step in our restructuring process and provides us with needed funds to pay down our bank line and with additional working capital." The company had 415 communities in the U.S., Canada, Germany and U.K. as of June 30 with a combined 42,750 units.
Sunrise had a quarterly loss in the second quarter on write-downs from its German holdings.
-By Kevin Kingsbury; Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com
time will tell but trading is a lot lighter pre market than i thought it would be. maybe this is one of those buy rumor (yesterday) sell news deals. :shrug:
looks like all profit taking in the early trading now.
looks like all profit taking in the early trading now.
I feel like I'm a kid again, standing next to the grown up table at Thanksgiving...
Should I move some of my 401k to allow trading? :shrug:
Should I move some of my 401k to allow trading? :shrug:
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
thanks guys :mj06:
more news coming soon that could really drive this north
keep on chuggin'!!!
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
I think I am going to have to stick to the original plan and keep the $5.00 sell on it.
You keeping all your shares straight through?
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
And there you have it. I am not on my trading account, so I was looking at delayed quotes.
Now... do I stick to my $5.00 sell target or do I wait for more?
Where is my discipline?
