ATLANTA, Aug. 2, 2019 /PRNewswire/ -- Regional
Health Properties, Inc. (NYSE American: RHE) (NYSE American:
RHEpA), a self-managed healthcare real estate investment company
that invests primarily in real estate purposed for senior living
and long-term care, has completed the sale of three of the four
skilled nursing properties located in Oklahoma, Alabama and Georgia, to affiliates of MED Healthcare
Partners LLC ("MED"), as contemplated by the purchase and sale
agreement previously disclosed by the Company in its Current Report
on Form 8-K filed with the Securities and Exchange Commission on
April 18, 2019.
The three properties were sold for the purchase price of
$26.1 million in cash.
The Company and MED agreed to extend the closing date on the
fourth property located in Oklahoma to August 28,
2019.
The Company used the cash proceeds from the sale to pay a net of
approximately $1.0 million in
outstanding interest, fees, and other costs and to repay
$24.7 million in debt which was
secured by the four skilled nursing facilities subject to the
purchase and sale agreement. As a result of such repayment, the
Company has extinguished all debt owing to Pinecone Realty Partners
II, LLC ("Pinecone") and Congressional Bank. For a period of three
months following such repayment, Pinecone will continue to hold a
right of first refusal to provide first mortgage financing for any
acquisition of a healthcare facility by the Company and an
exclusive option to refinance the Company's existing first mortgage
loan on the Company's facility known as Coosa Valley Health Care,
subject to the terms and conditions of the applicable loan
documents.
"The Company has accomplished a milestone with the successful
completion of this sale transaction," stated Brent Morrison, Regional's Chief Executive
Officer. "As a result, the Company was able to execute a
deleveraging transaction by shedding some of its non-strategic
business assets and repaying nearly $25
million of current debt outstanding, which includes full
repayment of the Pinecone and Congressional loans, thus greatly
improving the Company's overall balance sheet metrics, total book
value, and overall cash position while having minimal impact to
monthly cash flow. We also find ourselves in a good position to
refocus our efforts on the Company's more strategic assets
concentrated mostly in the south-east and mid-west United States as well as come to a final
resolution for only a few remaining legacy lawsuits still
outstanding."
Morrison concluded by saying, "The Company has encountered many
complicated and difficult obstacles over the past few years, but
management believes that many of these obstacles have now been
resolved and the completion of this transaction represents a
turning point for a new and bright future coming for the
Company."
About Regional Health Properties
Regional Health Properties, Inc. ("Regional") is the successor
to AdCare Health Systems, Inc., and 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.
Regional currently owns, leases or manages for third parties 25
facilities (13 of which are owned by Regional, nine of which are
leased by Regional and three of which are managed by Regional for
third parties). Of the 13 facilities owned by Regional, one
is held for sale subject to the purchase and sale agreement
previously disclosed by Regional in its Current Report on Form 8-K
filed with the Securities and Exchange Commission on April 18, 2019. Assuming the consummation of the
sale of the one remaining facility contemplated by such purchase
and sale agreement, 24 facilities would be owned, leased or managed
for third parties by Regional.
For more information, visit
www.regionalhealthproperties.com.
Important Cautions Regarding 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.
Words such as "expects," "intends," "believes," "anticipates,"
"plans," "likely," "will," "seeks," "estimates" and variations of
such words and similar expressions are intended to identify such
forward-looking statements. Statements in this press release
regarding future events and developments and our future
performance, as well as management's expectations, beliefs, plans,
estimates or projections relating to the future, are
forward-looking statements. Forward-looking statements in this
press release include, among others, statements regarding our
ability to consummate the sale of the one remaining facility
pursuant to the terms contemplated by the purchase and sale
agreement and as otherwise discussed in this press release.
Forward-looking statements, by their nature, involve estimates,
projections, goals, forecasts and assumptions and are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected or contemplated by our
forward-looking statements due to various factors, including, among
others additional expenses.
Regional does not guarantee that it will actually achieve the
plans, intentions or expectations disclosed in its forward-looking
statements and you should not place undue reliance on Regional's
forward-looking statements. There are a number of important factors
that could cause Regional's actual results to differ materially
from those indicated or implied by its forward-looking statements,
including those important factors set forth under the caption "Risk
Factors" in Regional's Annual Report on Form 10-K for the period
ended December 31, 2018, and
Regional's subsequent filings with the SEC.
These forward-looking statements and such risks, uncertainties
and other factors speak only as of the date of this press release,
and we expressly disclaim any obligation or undertaking to update
or revise any forward-looking statement contained herein, to
reflect any change in our expectations with regard thereto or any
other change in events, conditions or circumstances on which any
such statement is based, except to the extent otherwise required by
applicable law.
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SOURCE Regional Health Properties, Inc.