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Skilled Healthcare Group Announces $67MM With MidCap Financial

December 31, 2013, 08:02 AM
Filed Under: Healthcare

Skilled Healthcare Group, Inc. announced that it has closed a financing with MidCap Financial consisting of a $62.0 million non-recourse (subject to customary carve outs) mortgage-backed term loan and a $5.0 million asset based revolving credit facility with an initial balance of $5.0 million. The loans are secured by 10 skilled nursing facilities and have a term of three years and an interest rate based on LIBOR which is currently approximately 6.7%. The net loan proceeds of approximately $65.0 million have been used to pay down outstanding term debt in the Company's senior secured credit facility, which has a maturity date of April 2016 and an interest rate based on LIBOR which is currently approximately 6.8%.

"These loans, along with the disposition of two skilled nursing facilities earlier this month, further strengthen our balance sheet and provide additional cushion under our leverage ratio, which is a metric under our senior secured credit facility comparing earnings to debt that we must maintain below an agreed level," said Bob Fish, Chief Executive Officer of Skilled Healthcare Group.
"We closed $87.0 million in HUD-insured loans earlier this year, and we continue to believe that the HUD program offers attractive opportunities for longer-term financing at favorable interest rates. We anticipate that these new loans, and the ten skilled nursing facilities securing them, will transition well into HUD-insured loans in the future," continued Fish.

Skilled Healthcare Group, Inc., based in Foothill Ranch, California, is a holding company with subsidiary healthcare services companies, which in the aggregate had trailing twelve month revenue of approximately $864 million and approximately 15,000 employees as of September 30, 2013. Skilled Healthcare Group and its wholly-owned companies, operate long-term care facilities and provide a wide range of post-acute care services, with a strategic emphasis on sub-acute specialty health care.

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