SPRINGFIELD, Ohio, July 31 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (AMEX:ADK), an Ohio based long term care, home care and management company, today announced the refinancing of one of its nursing homes in Ohio.
Hearth & Care of Greenfield, LLC, is a 50-bed single story nursing home facility located in Greenfield, Ohio. Recently, the property was renovated with the addition of 10 state of the art private bedrooms, along with a new kitchen, laundry, activity and therapy rooms, a new front entrance and enhanced nurses' station totaling 10,550 square feet. Red Mortgage Capital, Inc., an FHA/MAP lender, processed and funded the $2,524,800 232/223(f) refinancing at an annual interest rate of 6.50% for a period of 30 years. The loan was closed on July 28, 2008 and is also subject to an annual insurance cost of one half per cent.
David A. Tenwick, Chairman of AdCare, stated, "The refinancing of Hearth & Care of Greenfield was a cash out refinancing, allowing AdCare to substantially increase cash on hand and improve balance sheet flexibility by recovering $800,000 previously invested in the renovation of the property. We now have long term, fixed rate HUD financing in place on six of the seven properties we have ownership interests in, and we will start the process to refinance our seventh property in the near future. The fixed rate, longer term and non-recourse re-financings should help with our equity and acquisition-line funding." About AdCare Health Systems, Inc.
AdCare Health Systems, Inc. (AMEX:ADK) develops, owns and manages assisted living facilities, nursing homes and retirement communities and provides home health care services. Prior to becoming a publicly traded company in November of 2006, AdCare operated as a private company for 18 years. AdCare's 920 employees provide high-quality care for patients and residents residing in the 15 facilities that they manage, seven of which are assisted living facilities, six skilled nursing centers and two independent senior living communities. The Company has ownership interests in seven of those facilities. In the ever expanding marketplace of long term care, AdCare's mission is to provide quality healthcare services to the elderly.
Safe Harbor Statement Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management. The forward- looking statements involve known and unknown risks, results, performance or achievements of the Company to differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by the Company with the Securities and Exchange Commission and include the Company's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. DATASOURCE: AdCare Health Systems, Inc.
CONTACT: April Spittle, Manager of Corporate Communications, +1-703-893-0021, ext. 108, Web site: http://www.adcarehealth.com/
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