Tandem Healthcare
Restructuring the entire capital stack to facilitate a purchase

With over $500,000,000 in various tranches of debt and over $70,000,000 of equity contributed by prior owners affiliated with Formation Capital and it’s investors and institutional partner, Tandem Health Care’s portfolio of 32 owned skilled nursing homes comprising approx. 3,832 beds in Florida, Pennsylvania and Virginia (while enjoying a high occupancy in excess of 92%) were over-leveraged. Caught in the tsunami of dislocation in the skilled nursing sector of 2018, affiliates of Senior Care Development joined with its long term partners at Fundamental Advisors (www.Fundamental.com) to purchase all the outstanding debt from multiple parties. Coupled with a “friendly” foreclosure of all of Formation Capitals and their investors interests in the portfolio across multiple states and counties the complicated “puzzle” was quickly “solved”. While the prior investors lost the vast majority of their  investment, the portfolio has been financially “right-sized” and stabilized which then allowed the SCD and FA realty ownership entity to lease the portfolio of nursing homes to an operator who could afford to make the necessary investments in the buildings to keep them competitive while providing a higher level of patient care to all the residents.

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