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News Archive


May 1, 2016

Arnold Whitman featured in The Leadership Series by Senior Housing News

Arnold Whitman, Founder and Chairman of Formation Capital

Meet Arnold Whitman, founder and chairman of Atlanta-based Formation Capital. Whitman founded the company in 1999 after a “tsunami” of negative events, including the credit crisis of 1998, a change in the prospective payment system and a host of liability issues. Having spent 15 years in the senior housing business at that time, Whitman decided to shift his approach from debt to equity. With more than $6 billion in transactions to date, he hasn’t looked back.

Today, Formation Capital is an active senior housing investor and “Arnie” has personally made a name for himself in the industry as Chairman Emeritus of the National Investment Center for Seniors Housing and Care (NIC), as co-chairman of Genesis Healthcare, as a partner to Aging2.0 and more. We sat down with Arnie to hear his definition of leadership, how a big risk can pay off and why senior housing provides a unique upside not found in other industries.

Take me back to the early days of Formation. What did your first investment look like?

We had a nice business plan and were very fortunate in that we secured our first transaction in Florida by acquiring (or trying to acquire) 53 facilities from Beverly Enterprises. It was 49 skilled nursing and four assisted living buildings for $165 million in July 2001. My partner and I put down all of the money that we had, literally.

We did that because we had debt and equity lined up alongside us, and said ‘OK, we’re ready to go, we’re going to make our first big investment.’

Florida was under huge pressure from all of the trial lawyers that were suing for anything they could as far as liability went at the time. In Florida, under the patient rights bill, if you served cold food, you could be sued. It was a very negative environment and all of the public companies were trying to get out of the state at that time. We had gone to Beverly, made this deal, we had the deal under contract, and we were thinking, ‘OK, we’re going to be on the map.’

Then 9/11 comes.

Two weeks later we went to New York to see UBS and Black Acre (which was our equity partner), and both of them bailed.

Now, we had had firm contracts with them to finance us. They used what’s called an MAC clause, [which address the possibility of a] material adverse change, to say ‘We are no longer going to do this deal.’ Everybody was, as you know, stunned.

The Trade Centers had come down, capital markets had crashed, everything was negative. So we were sitting there, everything we had on the table, and wondering, ‘Are we going to survive? Are we going to get through this? And what’s going to happen?’ My partner Steve Fishman and I literally pounded the pavement in New York looking for a way to finance that deal. It was pure desperation.

It took us about three months. There were a lot of threats thrown at us from Beverly Enterprises. If you’d been there you would have just been stunned.

Read entire feature here - http://leadership.seniorhousingnews.com/arnold-whitman-founder-and-chairman-of-formation-capital/


November 6, 2015

RHA Health Services Acquired by Formation Capital

RHA Health Services (RHA) is pleased to announce it has been acquired by funds managed by Formation Capital and Safanad Limited.

All programs and services have been acquired and will be incorporated into the new RHA. RHA’s management team will remain the same, with corporate headquarters in Asheville, NC and the financial services division in Atlanta, GA.

“We are thrilled to be the first company focused on mental health, substance abuse, and intellectual and developmental disabilities services in Formation Capital’s portfolio,” said Gordon J. Simmons, CEO of RHA Health Services, LLC. “Formation Capital, along with its strategic partner Safanad, will provide RHA with board-level guidance, strategic advice and greater access to equity and debt capital that will support the continued growth of RHA’s operations through the Mid-Atlantic and Southeast regions.”

People supported by RHA will see little to no change in the company’s day-to-day operations. “RHA’s focus remains the same,” said Simmons. “We will continue to focus on quality care, treatment and service for the people and communities we support.”

RHA Health Services, LLC provides a broad range of person-centered, integrated, and high-quality supports and services focused on children and adults living with mental health and substance abuse challenges, as well as those living with intellectual & developmental disabilities. RHA has over 5,000 employees in North Carolina, Tennessee, Georgia and Utah. For more information regarding RHA Health Services, LLC, visit www.rhahealthservices.org. Formation Capital is a global private investment management firm solely focused on healthcare services investment and healthcare real estate opportunities. Since 1999,

Formation Capital and its affiliates have sponsored over $9.0 billion of investments in healthcare services, seniors housing and care and post-acute services. For more information regarding Formation Capital, visit www.formationcapital.com. Safanad is a global principal investment firm that invests in real estate, private equity and public markets. Safanad’s investment focus is primarily within the healthcare, education, and financial services sectors. Since 2009, Safanad and its affiliates have invested in over $6.0 billion of investments in healthcare services, seniors housing and care and post-acute services. For more information, visit www.safanad.com.


July 2, 2015

Extendicare Announces Completion of Sale of Its U.S. Business

MARKHAM, ON, Jul 02, 2015 (Marketwired via COMTEX) -- Extendicare Inc. ("Extendicare" or the "Company") (EXE) today announced that effective July 1, 2015, it has completed its previously disclosed sale of the Company's U.S. business (the "Transaction") to a group of investors led by Formation Capital, LLC and an affiliate of Safanad (the "Purchaser"), for US$870 million ($1.1 billion using the closing U.S./Canadian dollar exchange rate of 1.249 as at June 30, 2015), partially settled through the assumption by the Purchaser of mortgage loans and other third-party indebtedness relating to the U.S. business of approximately US$655 million, and working capital and other specified adjustments. Extendicare currently estimates aggregate net after-tax proceeds from the Transaction of approximately US$240 million, or C$300 million using the closing foreign exchange rate of 1.249 at June 30, 2015.

The Company also today announced that Extendicare Health Services, Inc. (EHSI), which owned and operated the Company's U.S. business, was successful in closing on the sale of all of the 10 centres that were excluded from the Transaction for net-after tax cash proceeds of approximately US$11 million. All of the net after-tax cash proceeds related to the 10 centres were distributed to the Company prior to the closing of the Transaction in the form of intercompany cash dividends. The Company has also benefitted from the receipt of additional cash dividends from EHSI of approximately US$9 million during the first six months of 2015.

"We are pleased to have completed this strategic transaction which will facilitate the repositioning of Extendicare as a pure-play Canadian senior care and services company," commented Tim Lukenda, Extendicare's President and CEO.

"In addition to using part of the proceeds to repay a bridge loan associated with our recent home health acquisition, we intend to use the proceeds to further expand and grow our Canadian operations including growing our long-term care revenue through redevelopment, and exploring opportunities in the private-pay retirement space," Lukenda added.

The Company thanks the employees of EHSI for their loyal services and wishes them all of the best for the future.

Guggenheim Securities acted as financial advisor, and Bennett Jones LLP acted as legal advisor to the Board of Directors and its Strategic Committee in connection with the Transaction.

BofA Merrill Lynch and Desjardins Capital Markets acted as financial advisors, and Skadden, Arps, Slate, Meagher & Flom, LLP and Goodmans LLP acted as legal advisors to Formation Capital, LLC.

ABOUT EXTENDICARE

Extendicare is a leading provider of care and services for seniors in Canada. Through our network of 112 operated senior care centres (58 owned/54 managed) as well as our home health care operations, we are committed to delivering care throughout the health care continuum to meet the needs of a growing seniors' population in Canada. Our qualified and highly trained workforce of 22,400 individuals is dedicated to helping people live better through a commitment to quality service and a passion for what we do.

Forward-looking Statements

Information provided by Extendicare from time to time, including this release, contains or may contain forward-looking statements concerning anticipated financial events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including, without limitation, statements regarding the Company's expected net cash proceeds from the sale of the U.S. business, the expected growth opportunities resulting from the Transaction, and the Company's business operations, business strategy, and financial condition. Forward-looking statements can be identified because they generally contain the words "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "project", "will" or other similar expressions or the negative thereof. Forward-looking statements reflect management's beliefs and assumptions and are based on information currently available, and Extendicare assumes no obligation to update or revise any forward-looking statement, except as required by applicable securities laws. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Extendicare to differ materially from those expressed or implied in the statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare's forward-looking statements. Further information can be found in the disclosure documents filed by Extendicare with the securities regulatory authorities, available at www.sedar.comand on Extendicare's website at www.extendicare.com.


February 3, 2015

GENESIS HEALTHCARE COMBINES WITH SKILLED HEALTHCARE GROUP, INC.

GENESIS HEALTHCARE COMBINES WITH SKILLED HEALTHCARE GROUP, INC.
The Combined Company Will Trade on the NYSE With a New Ticker Symbol of GEN 

Kennett Square, PA – February 2, 2015 - Genesis HealthCare, LLC, one of the nation’s largest providers of skilled nursing and rehabilitation care, today announced that, effective February 2, 2015, it has completed its previously announced combination with  Skilled Healthcare Group, Inc. (Skilled Healthcare) (NYSE: SKH).  The newly combined company will operate under the name Genesis Healthcare, Inc. (Genesis). The combination adds the skilled nursing facilities, assisted and independent living centers, and hospice and home health agencies operated by Skilled Healthcare’s subsidiaries, as well as Skilled Healthcare’s Hallmark Rehabilitation business, to the Genesis family.

Under the terms of the agreement, Skilled Healthcare shareholders will collectively own 25.75% of the vote and value of the fully-diluted equity of the combined company.  Shareholders who held interests in Genesis will own the other 74.25%. The combined company will be traded on the NYSE with a new ticker symbol of GEN.  Headquarters for the combined company will remain in Kennett Square, PA, and George V. Hager, Jr. will be the Chief Executive Officer of the newly-combined company. 

The company’s post-combination Board of Directors consists of representative directors from both companies, as well as independent directors.  We believe this creates a governance structure that will facilitate and help to build strategic value. The post-combination board members consist of: Steven Fishman, Chairman of the Board of Directors, co-founder of Formation Capital; Arnold Whitman, co-founder of Formation Capital;  David Reis, Chief Executive Officer of Senior Care Development, LLC; George Hager, Chief Executive Officer of Genesis; Glenn S. Schafer, former President and Vice Chairman of Pacific Life Insurance Company; James V. McKeon, President of Valentine Associates LLC; Jim Bloem, former Chief Financial Officer of Humana Inc.; John F. DePodesta, co-founder of Primus Telecommunications Group, Inc.; Joshua Hausman, Managing Director of Onex Corporation; Robert H. Fish, former Chief Executive Officer of Skilled Healthcare; and Robert Hartman, Chairman of NuCare Services Corp.

 The combination of the two companies has created one of the largest post-acute care providers in the country, with more than 500 skilled nursing and assisted/senior living communities in 34 states.  It has also expanded Genesis’ rehabilitation therapy business, Genesis Rehab Services, to more than 1,800 service locations in 47 states and the District of Columbia.  The new company will have nearly 95,000 employees and had combined annual revenue of approximately $5.5 billion on a trailing twelve month basis as of September 30, 2014.   

 “This is an exciting time for Genesis as we become a publicly-traded company and further expand the services we provide to patients and residents nationwide,” stated Mr. George Hager.  “We believe the opportunities of scale created by this combination better position Genesis to meet the challenges facing the post-acute industry and enhance the company’s ability to successfully partner with payors and providers across the country.”

 Barclays and Bank of America Merrill Lynch served as Genesis’ financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP, Williams Mullen and Arnall Golden Gregory LLP acted as its legal advisors.

MTS Health Partners, L.P. served as Skilled’s exclusive financial advisor, and Kaye Scholer LLP acted as its legal advisor.


Media Relations
Jeanne Moore, Genesis Healthcare
484-949-5647

Investor Relations
Lori Mayer, Genesis Healthcare
 610-925-2000


December 1, 2014

Formation Capital Buys In U.S. And UK by Steve Monroe of SeniorCare Investor

Formation Capital Buys In U.S. And UK
Two More Mega-Deals Top Off Record M&A Year

After the blistering pace of M&A activity the past several months, the number of transactions in November appeared to taper off a bit. But don’t tell that to Formation Capital. In the span of five days, the private equity firm announced two transactions totaling just over $1.6 billion. Each of the two may end up being in the top 10 deals in terms of dollar value this year. And they come just 11 weeks after one of Formation Capital’s operating companies, Genesis HealthCare LLC, agreed to take Skilled Healthcare Group(NYSE: SKH) private in a $710 million transaction. (continues)

Click here for the full article.


July 18, 2014

Formation Capital And Safanad Close On $150 Million Skilled Nursing Portfolio

ATLANTA, July 18, 2014 /PRNewswire/ -- Formation Capital, a healthcare-focused private investment firm, together with Safanad Limited, a global principal investment firm, today announced the acquisition of fourteen skilled nursing facilities in the mid-Atlantic region for approximately $150 million. The portfolio is comprised of 1,658 beds with eleven facilities in Virginia, two in Maryland and one in Pennsylvania, and is operated by Consulate Health Care, the sixth largest provider of skilled nursing care.

"This transaction represents another solid investment that gives us an opportunity to leverage our healthcare and operating expertise as well as strengthen our relationship with a best in class operator," commented Arnold Whitman, Chairman of Formation Capital.

"We are very pleased to announce the close of this transaction as it represents another step in the multi-year strategic partnership between Formation Capital and Safanad," said Vincent Pica, managing partner and president of Safanad Inc., the US subsidiary of Safanad Ltd. "We continue to explore investment opportunities in the healthcare real estate sector and this acquisition demonstrates our commitment to the sector and to our investment partners."


March 17, 2014

NorthStar Realty Finance Announces Definitive Agreement to Acquire a $1.05 Billion Healthcare Real Estate Portfolio

NEW YORK, March 17, 2014 -- NorthStar Realty Finance Corp. (NYSE: NRF) ("NorthStar") today announced that it has entered into a definitive agreement to acquire a $1.05 billion healthcare real estate portfolio (the "Portfolio") from investment partnerships owned and managed by Formation Capital, LLC or its affiliated entities (collectively "Formation") and Safanad Limited. The Portfolio is comprised of 43 primarily private-pay senior housing facilities and 37 skilled nursing facilities. Inclusive of this portfolio, NorthStar has an approximately $1.6 billion healthcare real estate portfolio consisting of over 160 properties.

NorthStar is acquiring the Portfolio in a joint venture with Formation (the "Joint Venture"). Formation is a leading private investment firm focused on senior care real estate and services and post-acute healthcare. NorthStar and its affiliates will contribute approximately 92% of the $430 million of equity to purchase the Portfolio and the Joint Venture will assume in-place financing for the remainder of the purchase price.

NorthStar's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are very pleased to have a diversified, quality portfolio of healthcare properties added to our existing healthcare portfolio that we expect will produce attractive current and overall returns. Since joining our healthcare real estate team only two months ago, Jay Flaherty has sourced an investment pipeline through his relationships in the industry that is adding significant value to the NorthStar franchise."

Flaherty, who oversees NorthStar's healthcare real estate platform, added, "This transaction represents an initial step towards our goal of expanding NorthStar's healthcare portfolio into a preeminent healthcare real estate business. We are enthusiastic that this will be the first of many compelling transactions that we can complete with our partners at Formation Capital."

Portfolio Highlights

- The purchase price for the Portfolio represents a cap rate of 9.4%, an initial unlevered yield of 7.8% and an initial levered current yield of approximately 12%.

- The Portfolio is located across 14 states with the heaviest concentration (35%) in Florida.

- 36 of the 43 senior housing facilities will be owned through a RIDEA structure and the remaining facilities, including all 37 skilled nursing facilities, will be owned under triple-net leases across five separate master leases.

- The portion of the Portfolio under triple-net leases is expected to have a year-one aggregate lease coverage ratio of approximately 1.3x and all of the leases have fixed rent escalators between 2-3% annually.

About NorthStar Realty Finance Corp. NorthStar Realty Finance Corp. ("NorthStar") is a diversified commercial real estate investment and asset management company that is organized as a REIT. NorthStar recently announced a plan to spin-off its asset management business into a separate public company. For more information about NorthStar, please visit www.nrfc.com.

About Safanad Limited Safanad is a global principal investment firm that invests in real estate, private equity and public markets. With offices in New York, Dubai, London and Geneva, the firm seeks to identify attractive investment opportunities primarily within the healthcare, education, financial services and retail sectors. For more information regarding Safanad, please visit www.safanad.com.

Forward Looking Statements This press release contains certain "forward‑looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward‑looking statements are generally identifiable by use of forward‑looking terminology such as "will," "expect" or other similar words or expressions. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Such statements include, but are not limited to, the performance of the Portfolio and NorthStar's healthcare real estate portfolio generally, NorthStar's ability to close on the Portfolio, NorthStar's ability to source and complete additional transactions in healthcare real estate through the Joint Venture or other ventures with Formation Capital, the ability to allocate a portion of NorthStar's investment in the Portfolio to an affiliate of NorthStar, including NorthStar's healthcare non-traded REIT, and the amount and timing of such allocation, if any, the ability of the third party property operators to successfully manage the facilities in the Portfolio, NorthStar's ability to achieve strong current and overall returns on its healthcare real estate portfolio, NorthStar's ability to source additional opportunities through its joint venture with Mr. Flaherty, the scalability of NorthStar's healthcare platform, the amount of cash flow generated by the Portfolio, if any, in excess of the lease payments, NorthStar's ability to achieve anticipated levels of year-one coverage, NorthStar's future cash available for distribution and NorthStar's ability to maximize shareholder value. Additional factors that could cause actual results to differ materially from those in the forward-looking statements are specified in NorthStar's Annual Report on Form 10-K for the year ended December 31, 2013 and its other filings with the Securities and Exchange Commission.

Any forward-looking statements contained herein speak only as of the date of this press release. NorthStar expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

SOURCE NorthStar Realty Finance Corp.

Investor Relations, Joe Calabrese, (212) 827-3772


July 3, 2013

Seniors Housing Portfolio with Footprint in 13 States Is Acquired by Formation Capital

Formation Capital has acquired 36 seniors housing communities for approximately $400 million. With a footprint in 13 states, the portfolio comprises over 2,600 units representing a diversified care mix of 65% assisted living, 18% independent living and 16% memory care. Formation closed this transaction with its investment partner SAFANAD, a global principal investment house with locations in New York, Geneva, London and Dubai. 

The communities will be managed by Senior Lifestyles Corporation, Frontier Management, Prestige Senior Living and other high quality senior living operators.

“This transaction demonstrates Formation Capital’s continued focus on expanding its real estate footprint in private pay seniors housing,” said Brian Beckwith, Formation Capital’s Chief Executive Officer. “We believe this portfolio presented a rare opportunity to acquire high-quality real estate managed by best-in-class operating partners. We are excited to begin new strategic relationships with Senior Lifestyles Corporation and Prestige Senior Living and continue our strong relationship with Frontier Management.”

About Formation Capital 
Formation Capital is a leading private investment management firm focused on equity and debt healthcare investment opportunities. Since 1999, Formation Capital has invested over $5.5 billion of capital in seniors housing and care, post-acute services and health care real estate. For more information regarding Formation Capital, visit www.formationcapital.com 

About Frontier Management 
Frontier Management operates and manages quality seniors housing communities throughout the United States with expertise in Retirement, Assisted Living, and Memory Care. Currently, Frontier manages more than 41 communities in 8 states, stretching from the Pacific Northwest to the Southeast. For more information, go to www.frontiermgmt.com. 

About Senior Lifestyles Corporation
Senior Lifestyle, founded in 1985, is a privately-held owner, operator and developer of seniors housing communities. With a portfolio of more than 115 communities, located throughout 22 states, Senior Lifestyle offers independent living, assisted living, memory care and skilled nursing for the luxury, moderate and affordable segments. Senior Lifestyle has been routinely recognized as a leader in the delivery of innovative resident programs and hospitality services for all levels of care. Senior Lifestyle is well positioned for future growth due to the exceptional talent at all levels of the organization. These dedicated professionals are driven by the Senior Lifestyle Core Values and Mission of enriching our seniors’ lives today and tomorrow. To learn more please visit us at www.seniorlifestyle.com. 

About Prestige Senior Living
Prestige Senior Living is a family of independent living, assisted living and memory care communities operated through a philosophy of caring that promotes happiness, health and longevity to empower residents to achieve the level of purposeful living that they desire. Prestige's award-winning senior lifestyle services are based on a core value system of respect, integrity, commitment and trust, which serves as the bedrock of the more than 30 Prestige Senior Living communities across the Western United States. For more information visit www.prestigecare.com.


December 31, 2012

Formation Acquires Five Assisted Living and Memory Care Facilities

Formation Capital acquired five senior housing facilities on December 31, 2012. The portfolio, comprised of assisted living and memory care units in Oregon, will be operated by Frontier Management. HFM represented the seller, a regional owner/operator.

"Adding five high-quality assisted living and memory care facilities is a great addition to Formation’s real estate portfolio," says Brian Beckwith, Chief Executive Officer of Formation Capital. "We are excited to partner with a quality provider like Frontier Management and look forward to working together in the future."

About Frontier Management
Frontier Management operates and manages quality senior housing communities throughout the United States with expertise in Retirement, Assisted Living, and Memory Care. At Frontier, we are united by our Mission and Values. We strive every day to demonstrate our commitment, compassion and caring to our residents at each and every one of our communities. Currently, Frontier manages more than 41 communities in 8 states, stretching from the Pacific Northwest to the Southeast. For more information, go to www.frontiermgmt.com.


December 6, 2012

Formation Acquires Fourteen Skilled Nursing and Assisted Living Facilities

Formation Capital acquired fourteen skilled nursing and assisted living facilities in Florida on December 6, 2012. The portfolio is triple-net leased to Opis Management Resources, a leading Florida provider of skilled nursing.

"We are excited to add facilities recognized for high quality of care, as evidenced by four centers that have been awarded Gold Seal Awards by the State of Florida,” commented Arnold Whitman, Co-Chairman of Formation Capital.

About Opis Management Resources 
Opis Management Resources is dedicated to the highest standards of care for all those we serve – our customers, their families and each other. By listening to our customers, our caring and compassionate team members are continuously improving operations and creating a warm, respectful, dignified, ethical and safe environment for the elderly we serve. For more information, go to www.opismr.com.


December 3, 2012

Genesis HealthCare Acquires Sun Healthcare Group, Inc.

December 3, 2012- Genesis HealthCare (Genesis), one of the nation’s largest providers of skilled nursing and rehabilitation care, today announced that effective December 1, 2012 it completed the acquisition of Sun Healthcare Group, Inc. (Sun) (NASDAQ GS: SUNH). Based in Irvine, California, Sun is a healthcare services company serving primarily the senior population. Sun owns SunBridge Healthcare, LLC, which, directly and through affiliates, operates skilled nursing facilities, assisted and independent living centers, and behavioral health centers in 23 states. Sun also owns SunDance Rehabilitation, CareerStaff Unlimited, and SolAmor Hospice.

Read entire Press Release >>>


October 24, 2012

Brian Beckwith quoted in Senior Housing News article

Reposition or Wrecking Ball: Combatting Obsolescence in Aged Nursing Home Stock

...It’s the physical structure of these buildings that can be the problem, he says. Many were build in the late 70s and early 80s and were based on hospital design, with semi-private rooms and cafeteria-style dining options.

“You have to change the very essence of the way these properties are designed,” Turner says. Design used to center around medical services, with a nod to consumer preferences and socialization. These days, it’s almost the complete inverse—or should be, he argues.

But older buildings can still have value and serve residents well, if owners are willing to invest appropriately, according to Brian Beckwith, CEO of private investment management firm Formation Capital. His company recently purchased a $750 million skilled nursing portfolio with joint venture partner Safanad, a Geneva, Switzerland-based equity firm...

Read entire article at Seniors Housing News>>>


September 28, 2012

Formation Capital Acquires Ten Skilled Nursing Facilities

Formation Capital acquired ten skilled nursing facilities in Florida on September 28, 2012. The portfolio is triple-net leased to Consulate Health Care, a top-10 provider of skilled nursing services in the United States.

"We are pleased to continue to grow our health care real estate portfolio with Consulate,” said Brian Beckwith, CEO of Formation Capital.

About Consulate Health Care
A leading provider of short-term post-acute services and long-term care, Consulate Health Care operates more than 180 skilled nursing centers and assisted living residences in 21 states. Consulate is committed to delivering high-quality, personalized care to each of its residents and being the premier provider of long-term health care in all of its communities. For more information, go to http://www.consulatemgt.com.


August 1, 2012

Formation Recapitalizes Tandem Health Care

Formation Capital recapitalized its investment in Tandem Health Care, a health care real estate portfolio comprised of 68 post-acute/skilled nursing facilities primarily located in Florida, Ohio, Pennsylvania and Virginia. The facilities are located in either Certificate of Need states or states that have placed restrictions on new post-acute/skilled nursing construction. The portfolio has an occupancy rate of 93%, a quality mix of 52%, a net operating income margin of 17% and in-place rent coverage of 1.3x. The portfolio is master leased to Consulate Health Care. HCP provided a mezzanine loan facility to lend up to $205 million to Tandem.

This transaction exemplifies one of Formation’s strengths - working simultaneously with multiple parties to align interests and thereby create value for our investors,” said Arnold Whitman, Co-Chairman of Formation Capital.

We are excited to work with HCP to recapitalize a Class A skilled nursing portfolio and maintain our longstanding relationship with Consulate Health Care, a proven operator that we believe provides best-in-class quality of care,” states Brian Beckwith, CEO of Formation Capital.

About Consulate Health Care
A leading provider of short-term post-acute services and long-term care, Consulate Health Care operates more than 180 skilled nursing centers and assisted living residences in 21 states. Consulate is committed to delivering high-quality, personalized care to each of its residents and being the premier provider of long-term health care in all of its communities. For more information, go to http://www.consulatemgt.com.


August 1, 2012

HCP closes $205 Million Mezzanine Loan Facility

LONG BEACH, Calif.--(BUSINESS WIRE)--Aug. 1, 2012-- HCP (NYSE:HCP) announced that on July 31, 2012, it closed a mezzanine loan facility to lend up to $205 million to Tandem Health Care (“Tandem”), an affiliate of Formation Capital, as part of the recapitalization of a post-acute/skilled nursing portfolio. HCP funded $100 million (“First Tranche”) at closing and expects to fund an additional $105 million (“Second Tranche”) between March 2013 and August 2013. The Second Tranche will be used to repay debt senior to HCP’s loan. The loan is subordinate to $400 million in senior mortgage debt and $137 million in senior mezzanine debt. The loan bears interest at a fixed rate of 12% and 14% per annum for the First and Second Tranche, respectively. Including fees received at closing, the loan has a blended yield to maturity of approximately 13%. The facility will have a total term of up to 63 months from the initial closing.

The Tandem portfolio is comprised of 68 post-acute/skilled nursing facilities primarily located in Florida, OhioPennsylvania and Virginia. The facilities are located in either Certificate of Need states or states that have placed restrictions on new post-acute/skilled nursing construction. The portfolio has an occupancy rate of 93%, a quality mix of 52%, a net operating income margin of 17% and in-place rent coverage of 1.3x. The portfolio is master leased to LaVie Care Centers, an operator of 208 post-acute/skilled nursing facilities in the United States.

About HCP

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. The Company's portfolio of assets is diversified among five distinct sectors: senior housing, post-acute/skilled nursing, life science, medical office and hospitals. A publicly traded company since 1985, HCP: (i) was the first healthcare REIT selected to the S&P 500 index; (ii) has increased its dividend per share for 27 consecutive years; and (iii) is the only REIT included in the S&P 500 Dividend Aristocrats index. For more information regarding HCP, visit the Company's website at www.hcpi.com.

Forward-Looking Statements
The statements contained in this release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include general economic conditions, the ability to complete the satisfaction of the conditions to the funding of the second tranche, and the receipt of payments, including repayment of principal, on the mezzanine loan facility. Some of these risks, and other risks, are described from time to time in HCP's Securities and Exchange Commission filings.

Source: HCP, Inc.


July 9, 2012

Genesis To Buy Sun Healthcare by SeniorCare Investor

Genesis To Buy Sun Healthcare
A Changing View On The Future Of Skilled Nursing

After a relatively quiet acquisition market in seniors housing and care in 2012, at least compared with the near record dollar volume in 2011, as well as the largest number of publicly announced transactions since the 1990s, activity seemed to heat up towards the end of the second quarter. It was nothing huge in terms of dollar volume, and certainly nothing like last year in transaction volume, but a slightly noticeable change seemed to be in the air. Perhaps it was boredom among the various deal junkies, perhaps cash-heavy investors grew tired of earning 1% (if that) on their cash, or maybe it was just that some good opportunities became available. Most likely, it was all of the above, and all we hear is that the fourth quarter will be very active, despite the election uncertainty (and maybe because of it).  

Continue reading The SeniorCare Investor July cover story here.

SOURCE:  The SeniorCare Investor


June 21, 2012

Genesis HealthCare to Acquire Sun Healthcare Group, Inc.

IRVINE, CA -- (Marketwire) -- 06/20/12 -- Sun Healthcare Group, Inc. (NASDAQ: SUNH) today announced that it has signed a definitive agreement for the acquisition of Sun Healthcare (Sun) by Genesis HealthCare (Genesis). The combined company will be able to strengthen its core business lines and enhance its collective ability to provide the highest quality patient care while meeting the current challenges facing the healthcare industry.

Under the terms of the merger agreement, Genesis will acquire Sun for $8.50 per share of common stock in cash, resulting in a transaction value of approximately $275 million net of cash and debt acquired. Sun Healthcare's Board of Directors unanimously approved the transaction. The closing of the transaction is subject to customary conditions, including approval by Sun stockholders, expiration of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as well as regulatory approvals. The closing is expected to occur in the fall.

The transaction price represents a 43.1% premium over the closing sale price of Sun shares on Tuesday, June 19, 2012 and a 55.6% premium to the volume-weighted average closing sale price of approximately $5.46 during the 30 trading days prior to that date.

Regarding the transaction, William A. Mathies, Sun's Chairman and Chief Executive Officer, stated, "The combined entity will have broad geographic reach and the scale necessary to remain competitive in the post-acute sector. On a combined basis, the two companies generated roughly $4 billion in revenue in 2011 and will have more than 420 facilities and 75,000 employees."

"This transaction brings together two companies with similar operating structures, experienced and deep management teams, and cultures committed to quality patient care," Mathies continued. "Like Sun, Genesis operates a predominantly leased portfolio of skilled nursing and assisted living facilities as well as a fully integrated rehabilitation company. Together, the combined company will be able to use its strengths on a broader scale, which will be advantageous as the post-acute care industry continues to evolve."

"This is a tremendous opportunity to grow our business with an established industry operator," notes Genesis Chief Executive Officer George V. Hager, Jr. "Strategically, we will be able to improve economies of scale while enhancing our footprint and breadth of services. We look forward to welcoming Sun employees to the Genesis family and working together to build a stronger company."

Barclays is acting as Genesis' exclusive financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP, Williams Mullen and Arnall Golden Gregory LLP are acting as its legal advisors.

MTS Health Partners, L.P. is acting as Sun's exclusive financial advisor, and O'Melveny & Myers LLP is acting as its legal advisor.

Additional Information and Where to Find It
In connection with the acquisition, Sun will file a proxy statement and other relevant documents concerning the transaction with the Securities and Exchange Commission ("SEC"). The definitive proxy statement will be mailed to stockholders of Sun. Investors and stockholders of Sun are urged to read the definitive proxy statement and other relevant documents when they become available because they will contain important information about the transaction. Copies of these documents (when they become available) may be obtained free of charge by making a request to Sun's Investor Relations Department either in writing to Sun Healthcare Group, Inc., 101 Sun Avenue, N.E., Albuquerque, New Mexico 87109, or by telephone to (505) 468-2341. In addition, documents filed with the SEC by Sun may be obtained free of charge at the SEC's website at www.sec.gov or by clicking on "SEC Filings" on Sun's website at www.sunh.com.

Sun and its directors, executive officers and certain employees may be deemed to be participants in the solicitation of proxies from Sun's stockholders in respect of the transaction. Information concerning the ownership of Sun's securities by Sun's directors and executive officers is included in their SEC filings on Forms 3, 4 and 5, and additional information is also available in Sun's proxy statement for its 2012 Annual Meeting of Stockholders filed with the SEC on April 30, 2012. Information regarding Sun's directors, executive officers and other persons who may, under rules of the SEC, be considered participants in the solicitation of proxies in connection with the transaction, including their respective interests in the transaction by security holdings or otherwise, will be set forth in the definitive proxy statement concerning the transaction when it is filed with the SEC. Each of these documents is, or will be, available as described above.

About Sun Healthcare Group, Inc.
Sun Healthcare Group, Inc. (NASDAQ: SUNH) is a healthcare services company, serving principally the senior population, with consolidated annual revenues in excess of $1.9 billion and approximately 28,000 employees in 46 states. Sun's services are provided through its subsidiaries: as of Mar. 31, 2012, SunBridge Healthcare and its subsidiaries operate 158 skilled nursing centers, 13 combined skilled nursing, assisted and independent living centers, 10 assisted living centers, two independent living centers and seven mental health centers with an aggregate of 21,444 licensed beds in 23 states; SunDance Rehabilitation provides rehabilitation therapy services to affiliated and non-affiliated centers in 36 states; CareerStaff Unlimited provides medical staffing services in 40 states; and SolAmor Hospice provides hospice services in 11 states. For more information, go to www.sunh.com.

About Genesis HealthCare, LLC
Genesis HealthCare is one of the nation's largest skilled nursing care providers with over 200 skilled nursing centers and assisted living residences in 13 eastern states. Genesis also supplies rehabilitation therapy to over 1,100 healthcare providers in 35 states and the District of Columbia. For more information, go to www.genesishcc.com.

Forward-Looking Statements
Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "hope," "intend," "may" and similar expressions. Forward-looking statements in this release include all statements regarding the expected benefits and timing of the proposed transaction. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, delays in or failure to satisfy required closing conditions, including the receipt of required regulatory approvals with respect to the transaction; failure to consummate or delay in consummating the transaction for other reasons; the possibility that the expected benefits may not materialize as expected; and failure to successfully integrate the infrastructure and employees of Genesis and Sun. More information on factors that could affect Sun's business and financial results are included in Sun's filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on Sun's web site, www.sunh.com. There may be additional risks of which Sun is presently unaware or that it currently deems immaterial.

The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Sun's control. Sun cautions investors that any forward-looking statements made by Sun are not guarantees of future performance and are only made as of the date of this release. Sun disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.

Contact:
Sun Investor & Media Inquiries
(505) 468-2341

Genesis Media Inquiries
(484) 949-5647

Source: Sun Healthcare Group, Inc.
News Provided by Acquire Media


June 20, 2012

Stephanie Hamner and Courtney Roberts join Formation Capital

Formation Capital is pleased to announce the hiring of Stephanie Hamner and Courtney Roberts.  Ms. Hamner is joining the firm from GE Capital Healthcare Financial Services, where she spent the last six years, most recently as a Vice President.  She will join Formation Capital as a Vice President where she will focus on acquisitions and asset management.  Ms. Roberts is coming to Formation Capital from JER Partners where she was an Associate in JER’s US fund investment management group.  Ms. Roberts has joined Formation as an Associate, focused on acquisitions and asset management. 

“We are extremely excited to continue to grow our team here at Formation Capital with experienced and accomplished professionals,” said Brian Beckwith, CEO of Formation Capital.


June 15, 2012

Kentucky Acquisition

Formation Capital closed the acquisition of a 116 unit skilled nursing and independent living facility in Louisville, Kentucky in June.


April 30, 2012

New Financing Arm of Formation Capital

FC Lending, LLC, a new financing arm of Formation Capital, closed its first Tranche Loan in April of this year. Partnering with CapitalSource Bank as part of loan package, FC Lending, LLC provided $3.3M for an AristaCare Health Services building. FC Lending looks forward to being an additional financing source for operators and real estate owners in the senior housing industry.


April 3, 2012

Formation's Trissie Copses Farr featured at NIC and highlighted in Senior Housing News

NIC 2012: Why Quality Care & Outcomes Matter to Your Bottom Line

Quality matters, and keeping track of data and providing good outcomes in skilled nursing facilities is crucial, especially as failure to do so could seriously impact a facility’s bottom line, said a panel of experts at the National Investment Center for the Seniors Housing & Care (NIC) Skilled Nursing Symposium in Boca Raton, Fla.

Documentation, Documentation, Documentation

Documentation is key, the panel said.

“If you don’t have documentation, you stand risk of being in trouble if you’re audited,” said Trissie Copses Farr, Senior Vice President at Formation Capital/Formation Healthcare Group, adding that getting audited isn’t actually a matter of “if”—it will happen. “It is crucial to the success of your clinical practice that documentation is accurate, appropriate, and done correctly.”

Read entire article at Senior Housing News >>>


February 17, 2012

Formation Capital Completes Acquisition of 9 Illinois Facilities

Formation Capital announces the completion of the acquisition of the real estate of 8 skilled nursing facilities and 1 assisted living facility in Illinois which closed on December 30, 2011.


April 5, 2011

Formation Capital Concludes Sale of Genesis HealthCare Corporation Real Estate to Health Care REIT

Alpharetta, GA, April 5, 2011 -- Formation Capital (Formation), a leading investor in the seniors housing and health care industry, announced the completion of the $2.4 billion disposition of Genesis HealthCare Corporation's (Genesis) real estate assets to Health Care REIT on April 1, 2011. Health Care REIT acquired 147 post-acute, skilled nursing and assisted living facilities located in 11 states in the Northeast and Mid-Atlantic and will lease the operation and management of the facilities back to Genesis through a long-term, triple-net lease.


April 1, 2011

Formation Capital Announces New CEO

Formation Capital (Formation), a leading investor in the seniors housing and health care industry today announced the hiring of Brian Beckwith as Chief Executive Officer, effective April 18, 2011.