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Genesis HealthCare Closes on Previously Announced Financing Commitments

March 6, 2018

KENNETT SQUARE, PA–Genesis HealthCare (NYSE:GEN) (Genesis or the Company), one of the nation’s largest providers of post-acute care, today announced it has closed on its previously announced $555 million asset based lending (ABL) facility and the amended and expanded term loan which includes an additional $40 million tranche.

New Asset Based Lending Facility

On March 6, 2018, Genesis closed on a $555 million ABL facility with MidCap Financial and Apollo Investment Corporation (NASDAQ:AINV). The new ABL credit facility has a five year term and proceeds were used to replace and repay in full the Company’s existing $525 million revolving credit facility that was scheduled to mature on February 2, 2020. With the closing of the new ABL facility, the Company is no longer subject to a forbearance agreement which was set to expire March 21, 2018.

Term Loan

On March 6, 2018, the Company also closed on an agreement with affiliates of Welltower, Inc. and Omega Healthcare Investors, Inc. to amend and expand the Company’s existing $124 million term loan agreement. The amendment provides, among other things, (1) a new $40 million term loan tranche, (2) changes to interest rate margins applicable to the loans, and (3) the elimination of any principal amortization prior to maturity. Proceeds from the new $40 million tranche will be used for general corporate purposes.

“Closing the commitments is an important milestone in our restructuring plan,” noted George V. Hager, Jr., CEO of Genesis. “Together, the new ABL facility and expanded term loan provide us $70 million of added liquidity, improving our financial flexibility and extending the maturity of our ABL debt capital from 2020 under our previous facility to 2023.”


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