SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 31, 2017
KINDRED HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
680 South Fourth Street
(Address of principal executive offices)
Registrants telephone number, including area code: (502) 596-7300
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:
|☐||Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)|
|☐||Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)|
|☐||Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))|
|☐||Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|Item 7.01.||Regulation FD Disclosure.|
Incorporated by reference is Exhibit 99.1 attached hereto, a press release issued by Kindred Healthcare, Inc. (the Company) on August 31, 2017. This information is being furnished under Item 7.01 and shall not be deemed filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of such section nor shall this information be deemed incorporated by reference into any filing made by the Company under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
|Item 9.01.||Financial Statements and Exhibits.|
|Exhibit 99.1||Press release dated August 31, 2017.|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.
|KINDRED HEALTHCARE, INC.|
|Date: September 1, 2017||By:|
|Joseph L. Landenwich|
|General Counsel and Corporate Secretary|
|99.1||Press release dated August 31, 2017.|
KINDRED COMPLETES FIRST CLOSING FOR ITS
SKILLED NURSING FACILITY BUSINESS DIVESTITURE
Sale Proceeds from the Closing Approximated $519 Million
Closing Covered 54 of the 89 Skilled Nursing Facilities Held for Sale
LOUISVILLE, Ky. (August 31, 2017) Kindred Healthcare, Inc. (Kindred or the Company) (NYSE:KND) today announced that it has completed the first closing related to its previously announced agreement with BM Eagle Holdings, LLC, a joint venture led by affiliates of BlueMountain Capital Management, LLC (BlueMountain), to sell the Companys skilled nursing facility business for $700 million in cash.
On August 31, 2017, the Company completed the closing for 54 skilled nursing facilities in 10 states. Sale proceeds from the closing were approximately $519 million.
Benjamin A. Breier, President and Chief Executive Officer of Kindred, commented, We are pleased that we have completed the initial sale of a majority of the nursing facilities held for sale and look forward to completing the remainder of the closings by year end. We believe that the sale of our nursing facility operations will significantly enhance shareholder value, focus our attention to our higher margin and faster growing businesses, and advance our efforts to transform Kindreds strategy.
Mr. Breier continued, On behalf of the Kindred Board of Directors and management team, I thank all of our caregivers for their hard work to facilitate a smooth transfer process. We appreciate and respect their dedication to our patients, residents and their families.
As previously disclosed, Kindred entered into a definitive agreement with BlueMountain under which it will sell the Companys skilled nursing facility business for $700 million in cash. The sale includes 89 nursing centers and seven assisted living facilities, which collectively have approximately 11,500 employees in 18 states. Thirty-six of the skilled nursing facilities (the Ventas Properties) were or continue to be leased from Ventas, Inc. (NYSE:VTR), and Kindred has an option to acquire the real estate of the Ventas Properties for an aggregate consideration of $700 million. As Kindred closes on the sale of the Ventas Properties, Kindred will pay to Ventas the allocable portion of the $700 million purchase price for the Ventas Properties and Ventas will convey the real estate for the applicable Ventas Property to BlueMountain or another designee. In connection with the initial closing, Kindred paid $488 million to Ventas for 22 of the Ventas Properties that were included in the initial closing.
The completion of the remainder of the transaction closings are subject to customary conditions to closing, including the receipt of all licensure, regulatory and other approvals. Kindred expects that the remainder of the closings will occur in phases as regulatory and other approvals are received. Kindred expects that all of the closings will be completed by year end.
This press release includes 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 forward-looking statements include, but are not limited to, all statements regarding the Companys ability to exit the skilled nursing facility business and the expected timing of such exit, including the receipt of all required regulatory approvals and the satisfaction of the closing conditions for the transaction, as well as the Companys ability to realize the
680 South Fourth Street Louisville, Kentucky 40202
Kindred Completes First Closing for Its Skilled Nursing Facility Business Divestiture
August 31, 2017
anticipated benefits, sale proceeds, cost savings and strategic gains from the transaction, all statements regarding the Companys expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management, government investigations, regulatory matters, and statements containing words such as anticipate, approximate, believe, plan, estimate, expect, project, could, would, should, will, intend, hope, may, potential, upside, and other similar expressions. Statements in this press release concerning the Companys business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends or other financial items, and product or services line growth, and expected outcome of government investigations and other regulatory matters, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of the Company based upon currently available information.
Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from the Companys expectations as a result of a variety of factors. Such forward-looking statements are based upon managements current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Companys actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks, uncertainties, and other factors detailed from time to time in the Companys Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission.
Many of these factors are beyond the Companys control. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company 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.
About Kindred Healthcare
Kindred Healthcare, Inc., a top-100 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $6.1 billion(1). At June 30, 2017, Kindreds continuing operations, through its subsidiaries, had approximately 88,100 employees providing healthcare services in 2,540 locations in 45 states, including 81 long-term acute care hospitals, 19 inpatient rehabilitation hospitals, 19 sub-acute units, 614 Kindred at Home home health, hospice and non-medical home care sites of service, 102 inpatient rehabilitation units (hospital-based) and contract rehabilitation service businesses which served 1,705 non-affiliated sites of service. Ranked as one of Fortune magazines Most Admired Healthcare Companies for eight years, Kindreds mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information, go to www.kindredhealthcare.com. You can also follow us on Twitter and Facebook.
|(1)||Revenues from continuing operations for the last twelve months ended June 30, 2017.|