Skilled Healthcare Group Announces HUD Loan Commitments
FOOTHILL RANCH, Calif., June 13, 2013 /PRNewswire/ -- Skilled Healthcare Group, Inc. (NYSE: SKH) today announced that it has received its first commitments by the U.S. Department of Housing and Urban Development (HUD) to insure loans secured by nine skilled nursing facilities. The commitments are for loans up to an aggregate amount of $79.8 million. "This is a key step in our efforts to secure long-term low cost financing through participation in the HUD program," said Boyd Hendrickson, Chairman and Chief Executive Officer of Skilled Healthcare Group. "We anticipate that these loans will fund within approximately six weeks. We will use the net proceeds after fees and expenses to reduce the term debt portion of our senior secured credit facility. The loans fully amortize over 30 to 35 years with a projected all-in fixed-rate cost of approximately 4.6%. We have concurrently sought additional HUD loan commitments to approximately match the aggregate $250 million level allowable under our credit agreement, and will evaluate further HUD opportunities under the $460 million portfolio capacity at that time. We look forward to closing these loans and to securing the additional HUD loan commitments in the next several months," continued Mr. Hendrickson.
About Skilled Healthcare Group, Inc.
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 $872 million and approximately 15,000 employees as of March 31, 2013. Skilled Healthcare Group and its wholly-owned companies, collectively referred to as the "Company," 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. The Company operates long-term care facilities in California, Iowa, Kansas, Missouri, Nebraska, Nevada, New Mexico and Texas, including 74 skilled nursing facilities that offer sub-acute care and rehabilitative and specialty health skilled nursing care, and 22 assisted living facilities that provide room and board and social services. In addition, the Company provides physical, occupational and speech therapy in Company-operated facilities and unaffiliated facilities. Furthermore, the Company provides hospice and home health care in Arizona, California, Idaho, Montana, New Mexico and Nevada. The Company leases 5 skilled nursing facilities in California to an unaffiliated third party operator. More information about Skilled Healthcare is available at www.skilledhealthcaregroup.com.
Forward Looking Statements
This release includes "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" or "pursue," or the negative or other variations thereof or comparable terminology. They include statements about Skilled Healthcare's anticipated HUD financing. These forward-looking statements are based on current expectations and projections about future events, including the assumptions stated in this release. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance of Skilled Healthcare may differ materially from that expressed or implied by such forward-looking statements. There can be no assurance that the HUD financing will be completed in the timeframe or on the terms anticipated by the Company, or at all. Additionally, the Company faces a number of other risks and uncertainties, including, but not limited to, the factors described in Skilled Healthcare's Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein) and in our subsequent reports on Form 10-Q and Form 8-K. Any forward-looking statements are made only as of the date of this release. Skilled Healthcare disclaims any obligation to update the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements.
Skilled Healthcare Group, Inc.
Dev Ghose or Chris Felfe
SOURCE Skilled Healthcare Group, Inc.