Brookdale to settle stock purchase contracts early

Published 27/03/2025, 11:54
Brookdale to settle stock purchase contracts early

NASHVILLE, Tenn. - Brookdale Senior Living Inc. (NYSE: BKD), a leading operator of senior living communities with a market capitalization of $1.18 billion, has announced its decision to proceed with the early settlement of its prepaid stock purchase contracts. According to InvestingPro data, the company currently operates with a significant debt burden of $5.65 billion, making this settlement a crucial financial move. These contracts are part of the 7.00% tangible equity units issued on November 21, 2022, which also include a senior amortizing note due on November 15, 2025. With a current ratio of 0.88, InvestingPro analysis indicates that Brookdale’s short-term obligations exceed its liquid assets, highlighting the importance of managing its debt structure effectively.

The settlement of the purchase contracts will take place on March 31, 2025, where each contract holder will receive 12.9341 shares of Brookdale common stock for each purchase contract they hold, in addition to cash in lieu of any fractional shares. The number of shares to be issued is based on the average volume-weighted average price of Brookdale’s common stock on the New York Stock Exchange over the 20 trading days ending on March 26, 2025.

Furthermore, holders of tangible equity units or previously separated notes have until April 23, 2025, to require Brookdale to repurchase their notes, which includes any accrued and unpaid interest, provided they meet the conditions outlined in the governing indenture.

Brookdale issued a Notice of Election of Early Settlement to all holders of the tangible equity units and to those who hold separated purchase contracts and notes on March 27, 2025. The final day of trading for the tangible equity units will be March 28, 2025.

This move by Brookdale does not represent an offer or solicitation for the sale or purchase of any securities and is not intended for any jurisdiction where such an offer would be unlawful.

Brookdale Senior Living operates 647 communities in 41 states, serving approximately 58,000 residents as of December 31, 2024. The company generates annual revenue of $2.98 billion and EBITDA of $420.8 million, demonstrating significant operational scale. The company offers a range of living options, including independent living, assisted living, memory care, and continuing care retirement communities, with a focus on providing compassionate care and exceptional service. For deeper insights into Brookdale’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

The information for this article is based on a press release statement from Brookdale Senior Living Inc. and contains forward-looking statements that are subject to risks and uncertainties. These statements reflect the company’s current expectations and are not guarantees of future performance. Investors are advised to consider these risks when evaluating the company’s prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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