Emeritus/Blackstone bids for Sunwest
There were a couple of articles mentioning Emeritus bid for bankrupt Sunwest. Long Term Living Magazine's article here. Oregon Live also had an article here with links to the history of the Sunwest saga.
Emeritus Corporation, a national provider of assisted living and Alzheimer’s care services, was the only bid received in the Sunwest bankruptcy action. The purchase to acquire 149 communities formerly operated by an affiliate of Sunwest Management is a joint venture between Emeritus, Blackstone Real Estate Advisors VI, L.P., and Columbia Pacific Advisors, LLC, an entity affiliated with Emeritus’ Chairman and Co-CEO.
The transaction includes up to 149 communities with a total estimated purchase price of approximately $1.3 billion, which is comprised of debt assumption of approximately $1.0 billion and the balance in a combination of cash and membership interests. Blackstone will contribute approximately 80% of the remaining equity requirements with the balance split evenly between Columbia Pacific and Emeritus. The Blackstone Group bid $1.25 billion Monday to buy 145 senior living centers from Salem-based Sunwest Management. Emeritus anticipates that its initial contribution will be a minimum of $17.4 million, including other contributions for working capital and capital expenditure requirements, and would increase to as much as $34.2 million if there is no participation by existing Sunwest investors.
At least 15 lenders to various Sunwest entities objected to the sale. Many of the Sunwest's banks have objected to the entire restructuring, which prohibited them from repossessing the collateral -- individual assisted-living centers -- put up by the Sunwest affiliates after they defaulted on their loans.
Blackstone made the offer to purchase Sunwest in August 2009. It partnered with Seattle-based Emeritus Senior Living, which will take over management of the Sunwest facilities.
