Mariner to repay $65 million of term loan debt

By Sara Rosenberg

New York, Aug. 20 - Mariner Health Care Inc. intends to reduce its senior term loan balance by $65 million with proceeds from asset sales. The current outstanding balance of senior debt is $209 million.

The company has entered into a definitive agreement with Formation Capital LLC and Longwing Real Estate Ventures LLC to divest 20 of its Florida skilled nursing facilities for $92 million, comprised of $78 million in cash and a $14 million five-year subordinated promissory note. About $13 million of the cash proceeds will be to fund transaction costs and retire mortgage debt.

The transaction is expected to close around Sept. 30.

"This transaction affords us the opportunity to substantially reduce our exposure to liability insurance costs and litigation risks in the state of Florida and at the same time de-leverage the company," said Chris Winkle, chief executive officer, in a news release.

Mariner is an Atlanta operator of skilled nursing and assisted living facilities as well as long-term acute care hospitals.

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