ATLANTA, April 19, 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 provided an update on its strategic and operational progress.
- Engaged Stifel as the Company's financial advisor to assist the Board of Directors in reviewing strategic alternatives for the company
- Commenced a new master lease of the company's nine Arkansas facilities to affiliates of Skyline Healthcare LLC on April 1, 2016
- Received a financing commitment from the U.S. Department of Housing and Urban Development ("HUD"), subject to certain conditions, of approximately $3.7 million for one property located in South Carolina
"After careful deliberation and a review of the capabilities of several firms, the Board of Directors believes Stifel is the ideal financial advisor to provide strategic advice to the company," stated Bill McBride, AdCare's Chairman and Chief Executive Officer. "AdCare is at a pivotal time in its development and we believe Stifel, with its investment banking expertise in real estate, especially in healthcare real estate, will be of great help in exploring strategic alternatives for our company."
"Simultaneously, we continue to make progress in our efforts to strengthen our healthcare real estate portfolio, reduce interest costs and improve cash flow," added McBride. "A new master lease of our nine Arkansas facilities with affiliates of Skyline Healthcare LLC became effective on April 1, thereby increasing the rental revenue from the properties going forward and improving the operational and credit profile of our overall portfolio. In addition, we received a HUD commitment of $3.7 million to refinance debt associated with one of our properties located in South Carolina. We expect to close on the new financing in the first half of 2016, subject to certain conditions."
The company has not made a decision to pursue any specific strategic transaction or any other strategic alternative. There is no assurance that the review of strategic alternatives will result in the completion of any transaction or other alternative. The company has not set a timetable for completion of the review process, and it does not expect to comment further unless and until the Board of Directors has approved a specific transaction, or it otherwise deems further disclosure is appropriate or required by law.
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 company's transition to a healthcare property holding and leasing company, the refinancing of debt, the increase in rental revenues, the reduction of interest costs, the improvement of cash flows, and the review of strategic alternatives. 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.
SOURCE AdCare Health Systems, Inc.