The senior-living industry has been hard hit by the pandemic both because many nursing homes suffered COVID-19 outbreaks and because occupancy rates dropped last year. Ortelius has said publicly that it opposes the "series of exceedingly costly and highly dilutive transactions that would also effectively hand over control of the company to Conversant." Elias Chatzitheodoridis Professor at NTUA CEO of NoRCEL. Maximilian Lau Adjunct Assistant Professor and Researcher Japan. In communications with other shareholders, Ortelius said that it wants the company to have options to raise a smaller amount of near-term capital now that its occupancy levels and financial position are improving.Ĭapital Senior did not immediately respond to a request for comment.Įarlier this summer Capital Senior Living said it planned to raise capital through a private placement of convertible preferred stock to Conversant Capital, and that Conversant had agreed to backstop an associated rights offering and issue additional debt at a 15% interest rate. Analyst at Ortelius Capital New York, NY. Shareholders will vote on the financing deal on October 12.
Ortelius recently increased its ownership of Capital Senior Living to 13%. The terms include a lower borrowing rate than the company's proposed raise, the sources added. Ortelius has also lined up a term sheet for a $46 million bridge loan for Capital Senior Living, in case the company prefers supplemental debt financing, the sources said. At the time DeSorcy signaled a willingness to provide a near-term cash injection. In a letter to shareholders, Ortelius asserted that Capital Senior Living can survive and thrive without what it called. The offer comes roughly one month after Ortelius said it intended to block plans by the Dallas-headquartered operator of assisted living and related facilities to raise $152.5 million. Ortelius holds roughly 13 of Capital Senior’s outstanding common stock.
Caligan Partners, another activist investment firm, would also be ready to participate in shoring up fresh capital, the sources said.
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