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H2C CLIENT TRANSACTIONS

H2C executes $67 million bridge loan for senior living owner/operator

September 2023

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NEW YORK — H2C Securities Inc. (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive advisor to Quality Life Services (“QLS” or “Company”) in the execution of a bridge loan to refinance the debt associated with the Company’s portfolio of 10 skilled nursing and senior living facilities (the “Properties”). 

Founded in 1973, Quality Life Services is a family owned and operated post-acute healthcare network that, in addition to the Properties, comprises ancillary business units including home health, home care and hospice, pharmacy, staffing and an ISNP.  Like many skilled nursing providers, the pandemic had a significant, negative effect on QLS’ operations and financial performance.  The effects of the pandemic on the sector caused many banks, along with the Company’s lenders, to reduce their exposure to the long-term care sector and resulted in the need for QLS to refinance its outstanding debt.  With the continuation of its mission the most important objective, QLS retained H2C to assist in evaluating a range of strategic and financing options for the Company. H2C assembled a team of professionals with expertise in the capital markets, mergers and acquisitions, and healthcare real estate to identify and evaluate alternatives that would ensure access to quality care for QLS’ communities.  

H2C conducted in-depth analyses of each option and negotiated with various parties to improve the terms and conditions of each option.  Concurrently, H2C worked collaboratively with lawyers, tax counsel, and consultants to consider the immediate and long-term implications of each option.  QLS ultimately decided to execute a $67 million bridge-to-HUD loan for the Properties, allowing the company to retain control and prepare to secure lower cost long-term financing via HUD in the future. 

“Bridge-to-HUD loans are attractive options for senior living companies who are facing challenges with existing lenders and require time to execute the process of securing HUD financing.  We were pleased to be able to execute an attractive bridge loan for QLS that helped them to avoid unnecessary expense and position them for greater financial stability in the future,“ said Catherine Gao, Vice President, H2C Securities Inc. 


 

About Quality Life Services

Quality Life Services is a family owned and operated post-acute healthcare network providing 50 years of industry-leading services to Western Pennsylvania. Quality Life Services offers a range of services from skilled nursing, personal care, home health, hospice as well as their own pharmacy. QLS oversees over 1,300 beds and employs over 1,300 dedicated staff members specializing in providing care to seniors.  

About H2C Securities Inc. ("H2C") & H2C Real Estate Investment Banking Practice

H2C is a strategic advisory and investment banking firm committed to providing superior advice to healthcare organizations, higher education institutions, and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare and higher education mergers and acquisitions, capital markets, and real estate transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.

Securities and services offered through H2C Securities Inc., member FINRA/SIPC, a registered broker-dealer and an indirect subsidiary of Fifth Third Bank, National Association. All rights reserved. Securities and services offered through H2C Securities Inc.: Are Not FDIC Insured; Offer No Bank Guarantee; May Lose Value; Are Not Insured by any Federal Government Agency; Are Not a Deposit. 

For more information, visit h2c.com

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