Distressed Healthcare (Long Assists to Assisted Living)
Distressed Healthcare (Long Assists to Assisted Living). Nursing home and assisted living operator, Genesis HealthCare ($GEN), announced this week that it secured (i) a new $555mm asset-backed lending facility to pay down its existing $525mm facility and (ii) a new $40mm term loan extension - a $70mm enhancement to the company’s liquidity profile. As restructuring professionals circle around healthcare looking for some big action (and not really finding any), this was pretty big news. Meanwhile, Signature HealthCARE is looking to restructure its situation - a sitch that includes missed rent payments to landlords Omega Healthcare ($OHI) and Sabra Health Care REIT ($SBRA). Bankruptcy remains a possibility. Assisted living chain, HCR Manorcare ($HCR), won’t be so lucky; sources indicate that it is likely to file a prepackaged bankruptcy in the next week.