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ISS Recommends Shareholders Approve Cash-Strapped Senior Living Operator’s Financing Deal
Proxy advisory firm Institutional Shareholder Services (ISS) said Monday it recommended that shareholders of Capital Senior Living vote in favor of an investment agreement with Conversant Capital to raise up to $154.8 million. Without the financing, Dallas-based Capital Senior Living said last week, the company will likely run out of cash by year’s end.
“The company appears to have its back against the wall, with a high level of leverage coupled with a large amount of pending debt maturities over the next 12 months, which raises substantial doubt about its ability to remain a going concern in light of insufficient cash on hand or projected free cash flows to repay its upcoming debt maturities,” ISS said in its report.
Shareholder Ortelius Advisors, which has proposed its own financing alternative, rebutted the ISS recommendation, calling the financing deal between Capital Senior Living and Conversant “costly, dilutive and poorly structured.”
- ◦Financing
