BOSTON (Reuters) – Invictus Global Management, a large shareholder in Capital Senior Living Corp, is ready to offer alternative financing to the company’s proposed fund-raising plans, two sources close to the credit fund said on Wednesday.
Invictus, an Austin-based firm that specializes in debt financing, is the latest Capital Senior Living shareholder to offer cash in order to help scuttle the company’s plans to raise capital through a private placement of convertible preferred stock to Conversant Capital.
The sources said Invictus’ proposal would provide the company with $150 million in capital at a lower cost than its current plan but did not provide details. The sources said Invictus is ready to discuss its proposal with the company.
Shareholders will vote on the proposed financing deal with Conversant next month. The company on Wednesday pushed its shareholder meeting to Oct. 22 from Oct. 12.
Earlier this month, activist investor Ortelius Advisors, which owns roughly 13% of Capital Senior Living, also offered to provide a near-term cash infusion to avoid the plan with Conversant, which Ortelius says would harm shareholders.
Ortelius has also lined up a term sheet for a $46 million bridge loan for Capital Senior Living, in case the company prefers supplemental debt financing.
Earlier this summer Capital Senior Living unveiled the plan with Conversant Capital and said that Conversant had agreed to backstop an associated rights offering and issue additional debt at a 15% interest rate.
The senior-living industry has been hit hard by the pandemic, both because many nursing homes suffered COVID-19 outbreaks and because occupancy rates dropped last year.
(Reporting by Svea Herbst-Bayliss; editing by Richard Pullin)
