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Genesis HealthCare's revamped finances fail to excite investors; shares down 29%

Published 02/22/2018, 03:38 PM
Updated 02/22/2018, 03:38 PM
© Reuters. Genesis HealthCare's revamped finances fail to excite investors; shares down 29%
  • Genesis HealthCare (GEN -28.8%) slumps on more than triple normal volume in apparent reaction to its new financing commitments.
  • The company has secured a five-year $555M asset based lending (ABL) facility from MidCap Financial Trust consisting of a $325M first lien term loan, a $200M first lien credit revolver and a $30M overline facility. The first two will bear 90-day LIBOR + 6% while the overline will bear 90-day LIBOR + 11%. Proceeds will be used to repay and replace its current $525M credit revolver scheduled to mature on February 2, 2020. The agreement should close by March 9.
  • It has also locked in a $40M expansion to its existing $124M term loan.
  • Annual cash rent commitments have been reduced by $54M and annual cash interest by over $8M.
  • The company says it should be in compliance will all financial covenants in its material lease and credit agreements as of year-end 2017, subject to closing the contracts in process.
  • Now read: Omega Healthcare: Looking For A Dividend Cut In 2019


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