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Kindred Healthcare plans debt financing for buyout by consortium
By Sara Rosenberg
New York, Dec. 21 – Kindred Healthcare Inc. has received a commitment for debt financing to help fund its acquisition by TPG Capital, Welsh, Carson, Anderson & Stowe (WCAS) and Humana Inc., according to an 8-K filed with the Securities and Exchange Commission on Thursday.
Other funds for the transaction will come from equity.
Under the agreement, Kindred stockholders will receive $9 in cash for each share of common stock they hold. The purchase price is about $4.1 billion in cash including the assumption or repayment of net debt.
Immediately following the acquisition of Kindred, the home health, hospice and community care businesses will be separated from Kindred and operated as a stand-alone company owned 40% by Humana, with the remaining 60% owned by TPG and WCAS.
Kindred’s LTAC hospitals, IRFs and contract rehabilitation services businesses will be operated as a separate specialty hospital company owned by TPG and WCAS (Kindred Healthcare).
Closing is expected during the summer of 2018, subject to the approval by the stockholders of Kindred, the receipt of certain licensure and regulatory approvals, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 and other customary conditions.
Morgan Stanley & Co. LLC and JPMorgan Chase are acting as lead financial advisors to the consortium, and Citi is a financial advisor. Barclays and Guggenheim Securities, LLC are serving as financial advisors to Kindred. TripleTree LLC is acting as strategic and financial advisor to Humana.
Kindred Healthcare is a Louisville, Ky.-based health care services company.
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