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.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).