ATLANTA, April 19, 2016 /PRNewswire/ -- AdCare
Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare, today provided an update on its strategic and
operational progress.
Highlights
- Engaged Stifel as the Company's financial advisor to assist the
Board of Directors in reviewing strategic alternatives for the
company
- Commenced a new master lease of the company's nine Arkansas facilities to affiliates of Skyline
Healthcare LLC on April 1, 2016
- Received a financing commitment from the U.S. Department of
Housing and Urban Development ("HUD"), subject to certain
conditions, of approximately $3.7
million for one property located in South Carolina
"After careful deliberation and a review of the capabilities of
several firms, the Board of Directors believes Stifel is the ideal
financial advisor to provide strategic advice to the company,"
stated Bill McBride, AdCare's
Chairman and Chief Executive Officer. "AdCare is at a pivotal time
in its development and we believe Stifel, with its investment
banking expertise in real estate, especially in healthcare real
estate, will be of great help in exploring strategic alternatives
for our company."
"Simultaneously, we continue to make progress in our efforts to
strengthen our healthcare real estate portfolio, reduce interest
costs and improve cash flow," added McBride. "A new master lease of
our nine Arkansas facilities with
affiliates of Skyline Healthcare LLC became effective on
April 1, thereby increasing the
rental revenue from the properties going forward and improving the
operational and credit profile of our overall portfolio. In
addition, we received a HUD commitment of $3.7 million to refinance debt associated with
one of our properties located in South
Carolina. We expect to close on the new financing in the
first half of 2016, subject to certain conditions."
The company has not made a decision to pursue any specific
strategic transaction or any other strategic alternative. There is
no assurance that the review of strategic alternatives will result
in the completion of any transaction or other alternative. The
company has not set a timetable for completion of the review
process, and it does not expect to comment further unless and until
the Board of Directors has approved a specific transaction, or it
otherwise deems further disclosure is appropriate or required by
law.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA)
is a self-managed healthcare real estate investment company that
invests primarily in real estate purposed for senior living and
long-term healthcare through facility lease and sub-lease
transactions. The Company currently owns, leases or manages for
third parties 38 facilities. For more information about AdCare,
visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
Statements contained in this press release that are not
historical facts may be forward-looking statements within the
meaning of federal law. Such statements can be identified by the
use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or
similar expressions, but their absence does not mean that the
statement is not forward-looking. Statements in this press release
that are forward-looking include, among other things, statements
regarding the company's transition to a healthcare property holding
and leasing company, the refinancing of debt, the increase in
rental revenues, the reduction of interest costs, the improvement
of cash flows, and the review of strategic alternatives. Such
forward-looking statements reflect management's beliefs and
assumptions and are based upon information currently available to
management and involve known and unknown risks, results,
performance or achievements of AdCare, which may differ materially
from those expressed or implied in such statements. Such factors
are identified in the public filings made by AdCare with the
Securities and Exchange Commission, including AdCare's Annual
Report on Form 10-K for the year ended December 31, 2015. There is no assurance that
such factors or other factors will not affect the accuracy of such
forward-looking statements. Except where required by law, AdCare
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
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SOURCE AdCare Health Systems, Inc.