CCRC Financings and Workouts
The national financial crisis and tight credit markets have created significant challenges for the Continuing Care Retirement Community (CCRC) industry. CCRCs across the country are experiencing financial distress and limited financing options, requiring lenders and investors to identify workable solutions within the framework of financial modeling, industry-specific characteristics, and state-specific regulatory requirements.
Barnes & Thornburg's attorneys maintain a robust CCRC financing practice, with extensive experience serving as bank counsel, underwriter’s counsel, and bond counsel for CCRC financings.
CCRC financing participants turn to our attorneys for guidance on default waivers, covenant modifications, and restructuring transactions. Our team has represented banks and other lenders in workouts and bankruptcies involving CCRCs, including communities under construction or recently completed but not yet stabilized.
We have assembled a multidisciplinary team experienced in all facets of CCRC financings and workouts. We have experience representing banks and financial institutions acting as lenders and issuers of letters of credit and other credit facilities, investors, underwriters, bond trustees, master trustees, bondholders, CCRC owners, and other entities involved in financing CCRCs.
Our CCRC Group also has experience across public and private, taxable and tax-exempt financings; interest rate swaps; bankruptcy and creditors’ rights; and compliance matters, including nonprofit 501(c)(3) tax status and state licensure and regulation of CCRCs and their assisted living and nursing components. Our practice encompasses both nonprofit and for-profit CCRCs, as well as full life care and fee-for-service communities, including financings and workouts of assisted living and nursing facilities.
We have a deep understanding of the complex transaction structures and unique issues of the CCRC industry, including entrance fees and their role in financing startups. Our attorneys can evaluate novel circumstances, provide strategic perspective, and lead in structuring solutions that work for our clients and all parties involved.
Our attorneys are located in strategic markets nationwide and have participated in transactions across the country, with particular experience in the Mid-Atlantic region, Florida, and California — areas with numerous CCRCs and substantial regulatory oversight.