Press Releases


Kennett Square, PA –  Genesis HealthCare (Genesis), one of the nation’s largest providers of post-acute care, today announced that it has received formal portfolio credit approval from the U.S. Department of Housing and Urban Development Program (HUD).  

HUD approval is segmented into two components: 1) $360 million in HUD insured loans secured by certain facilities previously owned by Skilled Healthcare, Inc. and 2) $400 million of additional HUD insured loans conditioned upon the submission to and acceptance by HUD of additional qualifying assets. Proceeds from the initial $360 million of HUD insured loan borrowings will be used to refinance a real estate bridge loan at an estimated 4% per annum savings. The Company intends to utilize the additional $400 million of HUD insured loan capacity to refinance 20 properties to be acquired in the previously announced Revera transaction, 20 facility buybacks with its REIT partners and future unidentified transactions.   

“We greatly appreciate HUD’s approval and feel privileged to participate in the program,” states Genesis Chief Executive Officer, George V. Hager, Jr. “Reducing our cost of capital will improve free cash flow, allowing us to further invest in our assets, our people and our clinical programs.”

Genesis expects to refinance the $360 million bridge loan utilizing individual HUD guaranteed mortgages closing over the course of the first and second quarters of 2016.  Following completion of the bridge loan refinancing, Genesis intends to utilize additional HUD guaranteed mortgages to refinance the 20 Revera properties, the facility buybacks with its REIT partners, and other transactions.

“Our ability to access HUD financing is a key element of our balance sheet repositioning strategy,” notes Genesis Chief Financial Officer, Tom DiVittorio.  “The bridge refinancing and completion of the announced transactions with our REIT partners alone will increase our annual after-tax free cash flow between $25 million and $30 million, a nearly 40% increase off the midpoint of our 2015 guidance.”

About Genesis HealthCare
Genesis HealthCare (NYSE: GEN) is a holding company with subsidiaries that, on a combined basis, comprise one of the nation's largest post-acute care providers with more than 500 skilled nursing centers and assisted/senior living communities in 34 states nationwide. Genesis subsidiaries also supply rehabilitation and respiratory therapy to more than 1,700 healthcare providers in 45 states and the District of Columbia and China.  References made in this release to "Genesis," "the Company," "we," "us" and "our" refer to Genesis HealthCare and each of its wholly-owned companies. Visit our website at


Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue," "pursue, "plans" or "prospect," or the negative or other variations thereof or comparable terminology. They include, but are not limited to, statements about Genesis’ expectations and beliefs regarding its future financial performance, its anticipated synergy cost savings from the Skilled Healthcare combination, anticipated operating expense reductions, anticipated acquisitions, divestitures, joint ventures and development opportunities, anticipated deleveraging opportunities. These forward-looking statements are based on current expectations and projections about future events, including the assumptions stated in this release, and there can be no assurance that they will be achieved or occur, in whole or in part, in the timeframes anticipated by the Company or at all.

Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance of Genesis may differ materially from that expressed or implied by such forward-looking statements.

These risks and uncertainties include, but are not limited to the following:

•  reductions in Medicare reimbursement rates, or changes in the rules governing the Medicare program could have a material adverse effect on our revenue, financial condition and results of operations;

•  continued efforts of federal and state governments to contain growth in Medicaid expenditures could adversely affect our revenue and profitability;

•  we are subject to extensive and complex laws and government regulations. If we are not operating in compliance with these laws and regulations or if these laws and regulations change, we could be required to make significant expenditures or change our operations in order to bring our facilities and operations into compliance;

•  we face inspections, reviews, audits and investigations under federal and state government programs and contracts. These audits could have adverse findings that may negatively affect our business;

•  significant legal actions, which are commonplace in our professions, could subject us to increased operating costs and substantial uninsured liabilities, which would materially and adversely affect our results of operations, liquidity and financial condition;

•  future acquisitions may use significant resources, may be unsuccessful and could expose us to unforeseen liabilities;

•  we lease a significant number of our facilities and may experience risks relating to lease termination, lease extensions and special charges;

•  our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our financial obligations;

The Company’s Annual Report on Form 10-K for the year ended December 31, 2014, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the U.S. Securities and Exchange Commission discuss the foregoing risks as well as other important risks and uncertainties of which investors should be aware. Any forward-looking statements contained herein are made only as of the date of this release. Genesis disclaims any obligation to update the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements.