ATLANTA, Jan. 7, 2015 /PRNewswire/ -- AdCare
Health Systems, Inc. (NYSE MKT: ADK), (NYSE MKT: ADK.PRA), a
leading long-term care provider, today announced that, as part of
its ongoing strategic plan to transition from an owner and operator
of healthcare facilities to a healthcare property holding and
leasing company, it has obtained from a third-party lender two
conditional mortgage refinancing commitments to refinance, on a
long-term basis, approximately $21.0
million of current mortgage debt due February 2015 with respect to the Company's
Northridge Health Care, Woodland Hills Health Care and Cumberland
Healthcare nursing facilities, each located in Arkansas (the "Arkansas Properties"), and the
Company's Georgetown Healthcare and Rehabilitation and Sumter
Valley Nursing and Rehab Center, each located in South Carolina (the "South Carolina
Properties").
The commitments for the refinancing of the Arkansas Properties
(the "Arkansas Mortgage Facility") and the refinancing of the South
Carolina Properties (the "South Carolina Mortgage Facility") each
provide for a maturity date of September 1,
2016, monthly payments of principal plus interest based on a
25-year mortgage-style amortization, and an interest rate per annum
of LIBOR plus 425 basis points, among other terms. Each commitment
terminates on April 23, 2015 if the
applicable refinancing transaction is not completed by such
date.
The Arkansas Mortgage Facility and the South Carolina Mortgage
Facility will be guaranteed by AdCare Health Systems, Inc. and will
be secured by a first-priority security interest in favor of the
lender in the Arkansas Properties and the South Carolina
Properties, respectively, and all other assets of the Company's
subsidiaries which own such properties.
Completion of the refinancing transactions is subject to the
satisfaction of a number of conditions, including satisfactory
completion of the lender's due diligence and the negotiation and
execution of definitive loan and security agreements, among other
conditions set forth in the commitment letters.
Departure of Director
On January 3, 2015, Laurence E. Sturtz resigned from the Company's
Board of Directors due to health reasons. Mr. Sturtz's decision to
resign was not due to any disagreements with the Company on any
matter relating to the Company's operations, policies or practices.
David Tenwick, Chairman of the
Board, commented, "On behalf of the Board, I wish to thank Larry
for his service, ideas and feedback over the years, and we wish him
the best in the future."
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT:
ADK.PRA) is a recognized provider of senior living and health care
facility management. The Company owns and manages long-term care
facilities and retirement communities, and since the Company's
inception in 1988, its mission has been to provide the highest
quality of healthcare services to the elderly through its operating
subsidiaries, including a broad range of skilled nursing and
sub-acute care services. The Company has implemented a strategic
plan pursuant to which, through a series of leasing transactions,
it will transition from an owner and operator of healthcare
facilities to a healthcare property holding and leasing company.
For more information about the Company, 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 announcement
that are forward-looking include, but are not limited to: (i)
statements regarding the strategic plan to transition the Company
to a healthcare property holding and leasing company; (ii)
statements regarding the refinance of certain current
mortgage indebtedness; and (iii) statements regarding the terms,
conditions and timing of such refinancing transactions.
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 and include, among others,
AdCare's ability to secure lines of credit and/or an acquisition
credit facility, AdCare's ability to refinance its current debt on
more favorable terms, AdCare's ability to expand its borrowing
arrangement with certain existing lenders, AdCare's ability to
raise equity capital, AdCare's ability to improve operating
results, changes in the health care industry because of political
and economic influences, changes in regulations governing the
health care industry, changes in reimbursement levels, including
those under the Medicare and Medicaid programs and changes in the
competitive marketplace. 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.
In addition, each facility mentioned in this press release is
operated by a separate, wholly owned, independent operating
subsidiary that has its own management, employees and assets.
References to the consolidated Company and its assets and
activities, as well as the use of terms such as "we," "us," "our,"
and similar verbiage, is not meant to imply that AdCare Health
Systems, Inc. has direct operating assets, employees or revenue or
that any of the facilities, the home health business or other
related businesses are operated by the same entity.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adcare-health-systems-inc-obtains-two-conditional-refinancing-commitments-and-announces-change-in-its-board-of-directors-300017205.html
SOURCE AdCare Health Systems, Inc.