Sale Proceeds from the Recent Transaction Closings Approximated
$31 Million
Recent Transaction Closings Covered 12 Skilled Nursing Facilities
and One Assisted Living Facility Held for Sale
Company has Completed Sale or Operational Transfer for 90 of 96
Facilities Held for Sale
Company Website:
http://www.kindredhealthcare.com
LOUISVILLE, Ky. -- (Business Wire)
Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today
announced that it has completed additional transaction closings (the
“Closings”) related to its previously announced agreement with BM Eagle
Holdings, LLC, a joint venture led by affiliates of BlueMountain Capital
Management, LLC (“BlueMountain”), to sell the Company’s skilled nursing
facility business.
Since October 1, 2017, the Closings included 12 skilled nursing
facilities and one assisted living facility. Sale proceeds from the
Closings aggregated approximately $31 million. To date, the Company has
completed the sale of 80 skilled nursing facilities and five assisted
living facilities for aggregate proceeds of approximately $658 million.
Kindred also announced that it has reached an agreement with
BlueMountain and the relevant landlord to close five leased facilities
in Massachusetts. None of the original purchase price with BlueMountain
was allocated to these five facilities. The Company has transferred the
day-to-day operations of these facilities to a third party and expects
the closing of these facilities will be completed in the second quarter
of 2018. In addition to these five facilities, the Company continues to
make progress on the sale of its remaining five skilled nursing
facilities and one assisted living facility.
Certain of these remaining six facilities are likely to be sold outside
of the definitive agreement with BlueMountain, because in some cases
other parties have exercised rights of first refusal or similar rights
to purchase. Kindred expects approximately $27 million of additional net
proceeds from the sales of the remaining facilities. The completion of
the remainder of the sales are subject to final documentation and
customary conditions to closing, including the receipt of all licensure,
regulatory and other approvals. Kindred expects that the remainder of
the closings will occur as regulatory and other approvals are received
over the remainder of 2017 and through the first half of 2018. In
addition, the Company has for sale a parcel of real property and various
certificates of need related to its skilled nursing facility business
that it estimates will generate additional proceeds ranging from $7
million to $10 million.
Benjamin A. Breier, President and Chief Executive Officer of Kindred,
commented, “We have substantially completed the divestiture of our
skilled nursing facility business and continue to make steady progress
on the sale of a few remaining facilities. We continue to believe that
the sale of our skilled nursing facility business will significantly
enhance shareholder value, enable us to sharpen our focus on higher
margin and faster growing businesses, and further advance our efforts to
transform Kindred.”
Mr. Breier continued, “On behalf of the Kindred Board of Directors and
management team, I thank all of our caregivers for their hard work to
facilitate another smooth transfer process. We appreciate and respect
their dedication to our patients, residents and their families.”
As previously disclosed, the sale of the Company’s skilled nursing
facility portfolio to BlueMountain included 89 nursing centers and seven
assisted living facilities in 18 states. Thirty-six of these skilled
nursing facilities (the “Ventas Properties”) were or continue to be
leased from Ventas, Inc. (“Ventas”) (NYSE:VTR), and Kindred has an
option to acquire the real estate of the Ventas Properties for an
aggregate consideration of $700 million. As Kindred closes on the sale
of the Ventas Properties, Kindred will pay to Ventas the allocable
portion of the $700 million purchase price for the Ventas Properties and
the real estate for the applicable Ventas Property will be conveyed to
BlueMountain or another designee. In connection with the Closings
described above, Kindred paid approximately $77 million to Ventas for
five Ventas Properties that were included in the Closings. To date, the
Company has paid in aggregate approximately $647 million to Ventas for
the Ventas Properties involved in all of the completed closings.
Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, but are not limited to, all
statements regarding the Company’s ability to exit the skilled nursing
facility business and the expected timing of such exit, including the
receipt of all required regulatory approvals and the satisfaction of the
closing conditions for the transaction, as well as the Company’s ability
to realize the anticipated benefits, sale proceeds, cost savings and
strategic gains from the transaction, all statements regarding the
Company’s expected future financial position, results of operations,
cash flows, dividends, financing plans, business strategy, budgets,
capital expenditures, competitive positions, growth opportunities, plans
and objectives of management, government investigations, regulatory
matters, and statements containing words such as “anticipate,”
“approximate,” “believe,” “plan,” “estimate,” “expect,” “project,”
“could,” “would,” “should,” “will,” “intend,” “hope,” “may,”
“potential,” “upside,” and other similar expressions. Statements in this
press release concerning the Company’s business outlook or future
economic performance, anticipated profitability, revenues, expenses,
dividends or other financial items, and product or services line growth,
and expected outcome of government investigations and other regulatory
matters, together with other statements that are not historical facts,
are forward-looking statements that are estimates reflecting the best
judgment of the Company based upon currently available information.
Such forward-looking statements are inherently uncertain, and
stockholders and other potential investors must recognize that actual
results may differ materially from the Company’s expectations as a
result of a variety of factors. Such forward-looking statements are
based upon management’s current expectations and include known and
unknown risks, uncertainties and other factors, many of which the
Company is unable to predict or control, that may cause the Company’s
actual results, performance, or plans to differ materially from any
future results, performance or plans expressed or implied by such
forward-looking statements. These statements involve risks,
uncertainties, and other factors detailed from time to time in the
Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K filed with the Securities and Exchange
Commission.
Many of these factors are beyond the Company’s control. The Company
cautions investors that any forward-looking statements made by the
Company are not guarantees of future performance. The Company disclaims
any obligation to update any such factors or to announce publicly the
results of any revisions to any of the forward-looking statements to
reflect future events or developments.
About Kindred Healthcare
Kindred Healthcare, Inc., a top-105 private employer in the United
States, is a FORTUNE 500 healthcare services company based in
Louisville, Kentucky with annual revenues of approximately $6.1 billion(1).
At September 30, 2017, Kindred’s continuing operations, through its
subsidiaries, had approximately 86,400 employees providing healthcare
services in 2,475 locations in 45 states, including 77 long-term acute
care hospitals, 19 inpatient rehabilitation hospitals, 16 sub-acute
units, 609 Kindred at Home home health, hospice and non-medical home
care sites of service, 101 inpatient rehabilitation units
(hospital-based) and contract rehabilitation service businesses which
served 1,653 non-affiliated sites of service. Ranked as one of Fortune
magazine’s Most Admired Healthcare Companies for eight years, Kindred’s
mission is to promote healing, provide hope, preserve dignity and
produce value for each patient, resident, family member, customer,
employee and shareholder we serve. For more information, go to www.kindredhealthcare.com.
You can also follow us on Twitter
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(1) Revenues from continuing operations for the last twelve months ended
September 30, 2017.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171201005712/en/
Contacts:
Kindred Healthcare, Inc.
Todd Flowers, 502-596-6569
Investor
Relations
Source: Kindred Healthcare, Inc.
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