The Ayer is getting a bit thin.... Browder signed a mortgage
agreement with GE Capital for $115M, and an agreed revolving credit of $15M plus $3M swing. What's the difference between that and the investors (which GE has been at a different time)? The hospital secures the loan.
When maintenance money is tight, but capital improvements are available, that's when you know investors are tightening in the moneybelt. Maintenance can't secure a loan...real property and assets can.
What they fail to realize is this: A hospital is more (or less!) than the sum of it's assets. Management can drive down the intrinsic worth faster than you can say "cutbacks". Actually, they may well be aware. GE probably figured having your hand out at the beginning of the line is better than at the end.
Actually, the mortgage was signed on Dec 20, but not recorded until about a month later. It was, in fact, the day after the saga of Dr. Rimas Maurukas came to an ignoble ending with revocation of his medical license in the Commonwealth of Massachusetts.
Wednesday, February 27, 2008
Creative Financing....3/5
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2 comments:
I wonder how much of this loan is going to be used to pay HUD the DUD off.
There's an old song by Jerry Jeff Walker titled "P***ing in The Wind", that seems to fit this move by GE Capital quite nicely. May provide some golden parachutes for certain Essent executives and hospital administrators, but bupkus for the hospitals.
Where do I go to get me some of that there free money????
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