(RTTNews) - Genesis Healthcare Inc. (GEN) announced a strategic restructuring plan to strengthen its liquidity position and capital structure.
Genesis has agreed to terminate its master lease covering 51 facilities leased from affiliates of Welltower and transition operations to new operators. In return, Genesis will receive about $86 million, which it will use to repay a portion of its debt obligations to Welltower.
In addition, Genesis will receive about an additional $170 million in debt reduction from Welltower upon the occurrence of certain conditions, including the transition of the 51 facilities.
Meanwhile, Genesis entered into a definitive agreement with ReGen Healthcare, LLC for a capital infusion of $50 million.
The company will voluntarily delist its Class A common stock from the New York Stock Exchange and deregister its Common Stock under the Securities Exchange Act of 1934.
As part of the deal, two Genesis Board Members, John DePodesta and Terry Rappuhn, have relinquished their current positions and ReGen Healthcare has appointed David Harrington and John Randazzo, effective immediately. In addition, Harrington has been appointed Chairman of the Board.
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