Genesis HealthCare obtained a $395 million senior credit facility from White Oak Healthcare Finance this week, marking “an important step” in the operator’s restructuring.
White Oak acted as the sole lender and administrative agent in the deal.
“This loan is an important step in the restructuring of Genesis as a leader in high-quality health care service delivery,” David Harrington, executive chairman at Genesis said in the news release.
Last year marked a tumultuous one for Kennett Square, Pa.-based Genesis after it delisted from the New York Stock Exchange and entered into an agreement with ReGen Healthcare LLC for a capital infusion of $50 million — adding Harrington to its board as part of the deal. The three-part strategic restructuring plan included steps to reduce its debt by $256 million.
Near the end of 2021, Genesis announced the departures of their Chief Operating Officer Paul Bach, Chief Nursing Officer JoAnne Reifsnyder and Chief Financial Officer Tom DiVittorio. It also announced plans to shift to a model designed to build out a vertically integrated community-based health care system in every market, supported by centralized resources.
The longtime player in the skilled nursing space continues to chart a path toward recovery after seeing $67 million in lost revenue associated with COVID-19 during the second quarter of 2020 and $74 million for the first six months of 2020. The company’s occupancy dropped from 88.2% from the first quarter to 77% in the second and went down to 74.8% by July.
The company also sold 51 skilled nursing, assisted living and senior living facilities in nine states to new operators in exchange for $86 million that was used to repay a portion of its debt obligations to Welltower, along with $170 million in debt reduction from Welltower.
Providing and holding the entire credit facility shows White Oak’s commitment to the SNF industry, according to Isaac Soleimani, chairman and CEO.
White Oak launched a new team last summer, White Oak Healthcare Partners, headed by Jason Dopoulos, and told Skilled Nursing News it planned to get aggressive in the SNF market moving forward.
“We can lend up to $250 million on any given transaction and will continue to pursue nursing home deals,” Dopoulos told SNN back in July.
In September, White Oak acted as the administrative agent and helped arrange a $185 million senior credit facility for 14 skilled nursing facilities in the southeast. The transaction included more than 1,400 beds.
Requests for further comment from Genesis and White Oak were not returned.
Companies featured in this article:
Geneis HealthCare, ReGen Healthcare, Welltower, White Oak Healthcare Finance
