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Senator Investment Group Reports New Position In Brookdale Senior Living Inc. (BKD)

Senator Investment Group, a fund managed by Douglas Silverman and Alexander Klabin, has reported a new position in Brookdale Senior Living Inc. (NYSE:BKD). In its latest filing, the fund disclosed ownership of 6.25 million shares of the company, amassing 5.0 % of common stock.

Brookdale Senior Living, Inc. (NYSE:BKD)

Brookdale Senior Living Inc. (NYSE:BKD) is an owner and operator of senior living communities throughout the United States. The company provides an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents.

Last week, Brookdale Senior Living Inc. (NYSE: BKD) announced that it agreed to buy Emeritus Corporation (NYSE:ESC) and, through the merger, create the first national senior living solutions company. Under the terms of the agreement, Emeritus Corporation (NYSE:ESC) shareholders will receive 0.95 shares of Brookdale Senior Living Inc. (NYSE: BKD) common stock in exchange for each share of their Emeritus Corporation (NYSE:ESC) common stock. Based on the closing price of each company’s common stock on February 19, 2014, this exchange ratio implies a 32% premium on Emeritus Corporation (NYSE:ESC) shares. The transaction value totals $2.8 billion, with the inclusion of $1.4 billion of Emeritus Corporation (NYSE:ESC) mortgage debt. The deal is expected to close in the third quarter of 2014.

Michael Novogratz’s Fortress Investment Group is the largest shareholder of Brookdale Senior Living Inc. (NYSE:BKD), which recently upped its stake to 20.29 million shares, equal to 16.3% of the company, up from 17.59 million shares held previously James Dinan’s York Capital Management is another investor, which holds over 5 million shares of Brookdale.

In 2008, Douglas Silverman and Alexander Klabin founded Senator Investment Group. The duo worked at York Capital Management before that. Klabin’s expertise is private investments, value investing, distressed debt and special situations. Silverman’s expertise is in event driven investing. Silverman also worked at Merrill Lynch as an investment banker in their leveraged finance department.

Disclosure: none

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