Genesis HealthCare enters into $550 million of revolving facilities

By Tali Rackner

Norfolk, Va., Feb. 6 – Genesis HealthCare LLC entered into a new revolving credit facility on Feb. 2, and Skilled HealthCare Group, Inc. amended its term loan amendment dated Dec. 3, 2012, according to an 8-K filing with the Securities and Exchange Commission.

The five-year revolving facility provides for an up to $550 million senior secured asset-based revolver in three separate tranches: tranche A-1, tranche A-2 and FILO tranche.

Interest is Libor plus 275 basis points to 325 bps for tranche A-1, Libor plus 250 bps to 300 bps for tranche A-2 and Libor plus 500 bps for the FILO tranche.

The revolvers mature on Feb. 2, 2020. If Genesis’ term loan facility or real estate bridge loan maturities are not extended or the loans are not refinanced prior to their current maturities of Dec. 4, 2017 and Feb. 28, 2017, respectively, with longer-term debt, the revolvers will mature 90 days prior to such maturity date.

Also on Feb. 2, Genesis and some of its subsidiaries joined as guarantors of the term loan facility. This was a condition to the effectiveness of a Sept. 25 amendment that provides for some amendments to the financial covenants and other provisions of the facility and allows for and accommodates transactions pursuant to a purchase agreement. The original principal amount was $325 million, of which $230,671,683 is currently outstanding.

In addition, Genesis entered into a 24-month $360 million real estate bridge loan with two 90-day extension options. Interest is Libor plus 675 bps to 700 bps.

Genesis is a Kennett Square, Pa.-based skilled nursing care provider. Foothill Ranch, Calif.-based Skilled HealthCare operates skilled nursing and assisted-living facilities as well as rehabilitation therapy, hospice and home health-care businesses.

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