Reuters logo
BRIEF-Kindred reaches agreement with BM Eagle to sell its skilled nursing facility business for $700 mln
July 1, 2017 / 1:09 AM / 3 months ago

BRIEF-Kindred reaches agreement with BM Eagle to sell its skilled nursing facility business for $700 mln

June 30 (Reuters) - Kindred Healthcare Inc

* Kindred announces definitive agreement to divest skilled nursing facility business

* Total value to kindred will approximate $910 million

* Kindred will retain working capital, owned Las Vegas nursing center and hospital-based sub-acute units

* Expects phased transaction closings to begin in Q3 of 2017 and be completed by year end 2017

* Kindred expects phased transaction closings to begin in Q3 of 2017 and be completed by year end 2017

* Following sale, annual rent expense to be reduced by about $88 million, annual capex to be reduced by about $30 million

* Following sale, annual noncontrolling interests payments will be reduced by approximately $18 million

* Signed agreement with bm eagle under which will sell company’s skilled nursing facility business for $700 million in cash

* Expects to realize net value of approximately $210 million, subject to post-closing adjustments, and after $700 million payment to ventas

* “Expect exiting skilled nursing facility business will increase kindred’s annual cash flow by approximately $20 million to $30 million”

* Signed definitive agreement with BM Eagle Holdings to sell company’s skilled nursing facility business

* Guggenheim securities is acting as financial advisor to kindred

* Company estimates accounting change will reduce Q2 reported core EBITDAR from continuing operations by approximately $35 million Source text for Eikon: Further company coverage:

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below