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Wired News – Kindred Healthcare Shares Update on Transaction Closings of its Skilled Nursing Facility Business Divestiture

ACCESSWIRE

Stock Monitor: Brookdale Senior Living Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 05, 2017 / Active-Investors issued a free report on Kindred Healthcare, Inc. (NYSE: KND), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=KND as the Company's latest news hit the wire. On December 01, 2017, Kindred Healthcare, a leading healthcare services company, declared that it has completed the additional transaction closings for the previously announced agreement to sell its skilled nursing facility business to BM Eagle Holdings LLC, which is a joint venture led by affiliates of BlueMountain Capital Management, LLC. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for Brookdale Senior Living Inc. (NYSE: BKD), which also belongs to the Healthcare sector as the Company Kindred Healthcare. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kindred Healthcare most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=KND

Sales Proceeds from Transaction Closings

  • Kindred Healthcare has closed sale of 12 skilled nursing facilities and one assisted living facility since October 01, 2017.

  • These Closings have generated total proceeds of approximately $31 million.

  • So far, in totality, the Company has concluded the sale of 80 skilled nursing facilities and five assisted living facilities, which have generated proceeds of nearly $658 million.

Agreement to Close Massachusetts Leased Facilities

  • Additionally, Kindred Healthcare also declared that it has entered into an agreement with BlueMountain and the associate landlord to close its five leased facilities in Massachusetts.

  • However, the initial purchase price with BlueMountain did not cover these five facilities.

  • Kindred Healthcare had transferred the day-to-day operations of the Massachusetts facilities to a third party. And it expects to close these facilities by the second quarter of 2018.

  • Moreover, the Company is also making progress on the sale of its remaining five skilled nursing facilities and one assisted living facility.

Kindred Healthcare has Completed Sale or Operational Transfer for 90 of 96 Facilities

  • Kindred Healthcare announced the divestiture of its Skilled Nursing Facility Business on June 30, 2017. It included 89 nursing centers with 11,308 licensed beds and seven assisted living facilities with 380 licensed beds, which collectively have approximately 11,500 employees in 18 states. So far, the Company has completed the sale or operational transfer of 90 of these 96 facilities.

  • Of these remaining six facilities, some are likely to be sold outside of the definitive agreement with BlueMountain because in some cases other parties have exercised rights of first refusal or similar rights to purchase. The Company expects to generate total net proceeds of $27 million from the sales of these remaining facilities.

  • Also, the completion of the remaining sales is subject to final documentation and customary conditions, including the receipt of all licensure, regulatory and other approvals. The Company hopes to close these transactions by the end of 2017 or by the first half of 2018.

  • Moreover, Kindred Healthcare also holds a tract of real property and several certificates of need related to its skilled nursing facility business. It has also put these assets for sale, from which it expects to generate additional proceeds of $7 million to $10 million.

Consideration for Ventas Properties

  • Thirty-six of the total 89 skilled nursing facilities were or continue to be leased from Ventas Inc. However, Kindred Healthcare has an option to purchase the real estate of the Ventas Properties for a total consideration of $700 million.

  • Now that Kindred Healthcare is closing on the sale of the Ventas Properties, it is liable to pay to Ventas the allocable portion of the purchase price. In fact, it has already paid an aggregate amount of $647 million to Ventas for the Ventas Properties involved in all of the completed closings.

  • And consequently, the real estate for the related Ventas Property will be conveyed to BlueMountain or another designee.

Stock Performance Snapshot

December 04, 2017 - At Monday's closing bell, Kindred Healthcare's stock fell 2.01%, ending the trading session at $7.30.

Volume traded for the day: 664.39 thousand shares.

Stock performance in the last month – up 16.80%; and past twelve-month period – up 8.96%

After yesterday's close, Kindred Healthcare's market cap was at $686.42 million.

The stock has a dividend yield of 6.58%.

The stock is part of the Healthcare sector, categorized under the Long-Term Care Facilities industry.

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