CORRECTION: This story was corrected on July 28 to show that Ventas received 16.3 million warrants to buy Brookdale stock. 

The Brentwood senior living company Brookdale has renegotiated a lease with a major landlord covering 120 senior living communities.

Executives expect the new deal to provide stability during the coronavirus pandemic. 

Brookdale estimates that the deal, covering more than 10,000 units at properties owned by the real estate trust Ventas, will lower rent payments by a total of about $500 million over the next five years. Ventas owns the properties, but Brookdale operates the facilities. 

In exchange, Brookdale paid Ventas $115 million, surrendered a $47 million security deposit and agreed to pay an additional $45 million with 9% interest by 2025. Brookdale also issued Ventas warrants to buy 16.3 million shares — about 8% of total shares — at $3 per share. If Ventas executives exercise all those warrants, the Chicago-based company would become one of Brookdale’s top five institutional investors.

As a part of the deal, Brookdale also transferred its stake in five different communities to Ventas to pay off a $78 million debt that would have matured in September 2021. Brookdale will continue to manage those communities. 

In a press release, Brookdale CEO Cindy Baier said the new lease will help mitigate the business impact of the new coronavirus and significantly improve cash flow.

The deal doesn’t contain any conditions requiring Brookdale to achieve certain financial benchmarks, such as net worth and debt ratios. The company hopes that will provide the company stability during the coronavirus outbreak. 

Ventas and Brookdale restructured a predecessor to the new agreement in April 2018. The previous agreement unified the terms for Ventas properties. It also allowed Brookdale to pass off management of properties to other companies without needing Ventas’ permission, which Brookdale can still do under the current contract.  

Brookdale shares briefly jumped up about 13% on Monday morning, but later fell back to the day’s opening price. Brookdale’s shares have fallen by about 68% since mid-February. Ventas shares remained largely level on Monday.

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