Provident Resources Group, or PRG, has retained investment banking advisory firm
GLC Advisors to evaluate Great Lakes Senior Living’s portfolio of eight standalone senior housing communities, said Chris Hicks, president of PRG, today during a continuing disclosure call with holders of $380.2 million of senior living revenue bonds issued by the Arizona Industrial Development Authority. PRG is the sole member of Great Lakes.
PRG retained GLC Advisors, which specializes in restructuring and recapitalization, mergers and acquisitions, and debt advisory and valuation services, to assist in reviewing the portfolio, its operations and performance, and Great Lakes’ debt obligations in order to identify strategic alternatives to optimize the portfolio’s financial position.
Great Lakes’ independent auditor, Crowe LLP, issued warnings about the company’s ability to meet its financial covenants and continue as a going concern in its audited
2020 and
2021 financial reports. No timetable has been set to complete the review, and there have been no decisions made on strategic alternatives at this time, Hicks said during the call.
The announcement comes as Great Lakes reported a $10.1 million net loss for the nine-month period
ended Sept. 30. Great Lakes reported $23.3 million in total non-operating expenses, highlighted by a $13 million deficit in interest expense on senior bonds payable and $49.7 million in losses from depreciation, as previously reported. Additionally, PRG reported $6.3 million in accrued management fees from December 2021 through September 2022, and $1.1 million in accrued property taxes during the same period, PRG CFO Marla Scannicchio told bondholders.
Great Lakes reported $43.2 million in total operating revenue for the nine-month period ended Sept. 30. This is $43.4 million below budget because of decreased occupancy, as well as sales and marketing teams at four communities employing discounted entrance fees and monthly rates to increase occupancy, Scannicchio said.
--Chuck Sudo