ATLANTA, May 2, 2016 /PRNewswire/ -- AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare, today announced that an affiliate of Skyline Healthcare, LLC delivered notice of its intent to exercise its option to purchase nine facilities.
As previously disclosed, the Company commenced a new master lease agreement for its nine Arkansas facilities to affiliates of Skyline Healthcare, LLC on April 1, 2016. The terms of the master lease agreement provided an option for an affiliate of the lessees to purchase the facilities. In accordance with the option agreement, the purchase price of the properties is to be $55 million.
Completion of the sale is expected to occur on or before August 1, 2016 and is contingent upon execution of a definitive purchase agreement containing usual and customary representations, warranties and closing conditions.
The Company expects to utilize approximately $30 million of the proceeds from the sale to repay mortgage debt associated with such properties (net of restricted cash held as collateral in connection with such loans) with the remainder used for general corporate purposes.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA) is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare through facility lease and sub-lease transactions. The Company currently owns, leases or manages for third parties 38 facilities. For more information about AdCare, visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this press release that are forward-looking include, among other things, statements regarding the potential sale of its Arkansas facilities. Such forward-looking statements reflect management's beliefs and assumptions and are based upon information currently available to management and involve known and unknown risks, results, performance or achievements of AdCare, which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission, including AdCare's Annual Report on Form 10-K for the year ended December 31, 2015. There is no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
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SOURCE AdCare Health Systems, Inc.