KENNETT SQUARE, Pa., March 06, 2018 (GLOBE NEWSWIRE) -- 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., Chief Executive Officer 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.”
About Genesis HealthCare
Genesis HealthCare (NYSE:GEN) is a holding company with subsidiaries that, on a combined basis, comprise one of the nation's largest post-acute care providers with more than 450 skilled nursing facilities and assisted/senior living communities in 30 states nationwide. Genesis subsidiaries also supply rehabilitation and respiratory therapy to more than 1,600 healthcare providers in 46 states, the District of Columbia and China. References made in this release to "Genesis," "the Company," "we," "us" and "our" refer to Genesis HealthCare and each of its wholly-owned companies. Visit our website at www.genesishcc.com.
About Midcap Financial
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to companies across all industries. We provide a broad array of products intended to finance growth and manage working capital. The company is headquartered in Bethesda, MD, with offices in Chicago and Los Angeles. For more information, visit www.midcapfinancial.com.
MidCap Financial refers to MidCap FinCo Designated Activity Company, a private limited company domiciled in Ireland, and its subsidiaries, including MidCap Financial Services, LLC. MidCap Financial Services, LLC employs all personnel and provides sourcing, due diligence and portfolio management services to MidCap FinCo Designated Activity Company pursuant to a services agreement. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management (NYSE: APO), pursuant to an investment management agreement.
About Apollo Investment Corporation
Apollo Investment Corporation (NASDAQ:AINV) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. The Company may also invest in the securities of public companies and structured products and other investments such as collateralized loan obligations and credit-linked notes. The Company seeks to provide private financing solutions for private companies that do not have access to the more traditional providers of credit. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, LLC, a leading global alternative investment manager. For more information, please visit www.apolloic.com.
