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.