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​Putting the Puzzle Together While the Pieces Change

Quarles & Brady was working on two major deals for a bank seeking to structure syndicated loans totaling $100 million to a nationwide network of assisted care facilities. One transaction involved the refinancing of an existing facility for a borrower; 73 of its subsidiaries guaranteed the debt and used both personal property and 20 parcels of real estate in five states as collateral. The second transaction involved secured loans to the same borrower (but with a different set of 70-plus guarantors and a different collateral package) to provide additional financing to supplement existing Federal Housing Administration (FHA) loans to the borrower, guaranteed by the Department of Housing and Urban Development (HUD). Shortly before the closing of the first transaction, Medicare/Medicaid changed its rules for reimbursement—and the borrower’s financial condition was significantly damaged.

Our attorneys assisted our health care borrower client within the tight deadline while representing the needs of our bank client and successfully navigating the transactional and government obstacles to complete the work.