DIVERSICARE HEALTHCARE SERVICES, INC. (NASDAQ:DVCR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into Material Definitive Agreement.
On July 1, 2017, in connection with the acquisition referenced below, Diversicare Healthcare Services, Inc. and subsidiaries (the “Company”) executed a Fourth Amendment (the “Revolver Amendment”) to the Third Amended and Restated Revolving Loan And Security Agreement dated as of February 26, 2016 and a Second Amendment (the "Term Amendment") to the Second Amended and Restated Term Loan and Security Agreement dated as of February 26, 2016 with a syndicate of financial institutions and banks, including The PrivateBank and Trust Company, the administering agent. Prior to the Revolver Amendment, the maximum capacity under the revolving facility was $52.25 million and was scheduled to be reduced to $42.25 million on August 1, 2017. The Revolver Amendment modifies the capacity to remain at $52.25 million. The Term Amendment amends the terms of the Loan Agreement by increasing the Company’s term loan facility from $60.0 million to $67.5 million.
Item 8.01 Other Events.
Effective July 1, 2017 the Company acquired a 103-bed skilled nursing center in Selma, Alabama, including certain land, improvements, furniture, fixtures and equipment, personal property and intangible property from Park Place Nursing and Rehabilitation Center, LLC, Dunn Nursing Home, Inc., Wood Properties of Selma LLC, and Homewood of Selma, LLC for an aggregate purchase price of $8.75 million. This facility is expected to contribute in excess of $8.0 million in annual revenues. A copy of a press release describing the transaction is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
NumberExhibit
99.1Press release dated July 5, 2017.
Diversicare Healthcare Services, Inc. ExhibitEX-99.1 2 ex991-selmapurchasepressre.htm EXHIBIT 99.1 Exhibit Company Contact: Investor Relations:Kelly J. Gill James R. McKnight,…To view the full exhibit click here
About DIVERSICARE HEALTHCARE SERVICES, INC. (NASDAQ:DVCR)
Diversicare Healthcare Services, Inc. provides post-acute care services to nursing center patients and residents in approximately nine states, primarily in the Southeast and the Southwest United States. The Company’s post-acute care services to patients and residents include skilled nursing, ancillary healthcare services and assisted living. In addition to the nursing, personal care and social services that are provided in long-term care centers, the Company offers a range of rehabilitative, respiratory and other ancillary services. The Company’s operations consist of approximately 60 nursing and senior housing centers with approximately 6,060 licensed nursing beds. Its nursing centers range in size from 48 to 320 licensed nursing beds. The nursing centers provide nursing healthcare services, including nutrition services, recreational therapy, social services and laundry services. The Company operates in Alabama, Florida, Indiana, Kansas, Kentucky, Missouri, Ohio, Tennessee and Texas.
