Regional Health Properties, Inc. (NYSE American: RHE) completed the sale of three SNFs in Oklahoma, Alabama, and Georgia to affiliates of MED Healthcare Partners LLC for $26.1 million in cash.
The closing date on a fourth property involved in the deal, located in Oklahoma, was extended to August 28.
Regional Health used the proceeds from the sale to pay about $1 million in outstanding interest, fees, and other costs, and to repay $24.7 million in debt secured by the four SNFs subject to the purchase and sale agreement.
The sale represented a milestone for Regional, CEO Brent Morrison said in a statement announcing the deal.
“We also find ourselves in a good position to refocus our efforts on the company’s more strategic assets concentrated mostly in the Southeast and Midwest United States, as well as come to a final resolution for only a few remaining legacy lawsuits still outstanding,” he said.
SLIB Handles $21.5M Sale in Pennsylvania
Senior Living Investment Brokerage announced the $21.5 million sale of a 186-bed skilled nursing facility in Chambersburg, Pa.
The unnamed seller was looking to divest its small concentration of assets in the Pennsylvania marketplace, eventually offloading the property to a New York-based owner-operator with a growing presence in the Keystone State.
“This transaction allowed for the ownership group to exit the Pennsylvania market, which is outside of their normal scope of operations,” SLIB managing director Matthew Alley said in a statement announcing the deal.
Built in 1968, the facility was 88% full at the time it hit the market, according to the Glen Ellyn, Ill.-based SLIB, with annual net operating income of $3 million. The previous owners had run into some regulatory issues that had since been resolved but “drove down performance from prior years,” SLIB noted.
Alley, along with Toby Siefert and Nick Cacciabando, led the deal for SLIB.
Alleon Healthcare Closes $5M Credit Line for Texas SNF Company
Alleon Healthcare Capital closed a $5 million medical accounts receivable line of credit for a company that operates four SNFs in Texas — with locations in Seguin, Fort Worth, Dallas, and Carrolton.
The company, which has a total of 505 beds and 574 employees, filed for Chapter 11 bankruptcy protection in 2018. Alleon helped the firm restructure by paying off its current lender with an asset-based line of credit that consists of medical receivables due from government and commercial health insurance payers, with an advance rate of up to 85% on eligible receivables.
“We are extremely proud to have helped our client restructure its company and come out of bankruptcy,” Ben Malyar, vice president of business development at Alleon, said in a press release announcing the deal.