Skilled Healthcare Group To Continue Pursuing HUD Insured Loans For Up To $460 Million On 78 Properties

Skilled Healthcare Group To Continue Pursuing HUD Insured Loans For Up To $460
                           Million On 78 Properties

PR Newswire

FOOTHILL RANCH, Calif., March 18, 2013

FOOTHILL RANCH, Calif., March 18, 2013 /PRNewswire/ --Skilled Healthcare
Group, Inc. (NYSE: SKH) today announced that the U.S. Department of Housing
and Urban Development (HUD) has informed the Company that it will resume
processing the Company's pending application for approval of up to $460
million in HUD-insured loans. As previously announced, the Company had
received formal portfolio conditional credit approval from the U.S. Department
of Housing and Urban Development (HUD) for loans up to an aggregate of $460
Million in HUD insured loans secured by up to 78 facilities under HUD's
Section 232 loan program. However, on October 31, 2012, the California
Attorney General's Bureau of Medi-Cal Fraud & Elder Abuse filed a complaint
against Eureka Healthcare and Rehabilitation Center, LLC, Skilled Healthcare,
LLC and the Company (the "BMFEA Action"). HUD subsequently informed the
Company that it would not process or underwrite any HUD-insured loans until
such time as the BMFEA Action was resolved to HUD's satisfaction. As
previously disclosed, on February 15, 2013, the parties to the BMFEA Action
reached a mutually satisfactory settlement of the matter. The Company
thereafter informed HUD of the terms of the resolution.

"While we have not determined the amount of borrowings we will ultimately seek
under the HUD insured loan program, and all loan applications will be subject
to further review and approval by HUD, we have submitted application fees to
begin processing the first $100 million of HUD insured loans. At this point,
with the ordinary processing time required for HUD to review and approve
loans, we do not expect that our loan applications would begin to close until
at least the second quarter of 2013. We have identified properties for
further HUD insured loan applications up to the maximum value currently
permitted under our senior secured credit agreement, to bring the total to
$250 million, but we have not yet submitted the fees associated with that
underwriting. We expect to evaluate whether to submit the next tranche of
loan applications as the first loan applications proceed through the loan
underwriting process. As a reference point, should we proceed with and close
$250 million in aggregate HUD insured loans, at current interest rates we
would anticipate annual interest expense savings of approximately $10 million
per annum," said Boyd Hendrickson, Chairman and Chief Executive Officer of
Skilled Healthcare Group.

Forward-Looking Statements

This release includes "forward-looking statements." 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" or "pursue," or the negative or other
variations thereof or comparable terminology. They include statements about
the Company's pursuit of HUD-insured loans. These forward-looking statements
are based on current expectations and projections about future events.

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
Skilled Healthcare may differ materially from that expressed or implied by
such forward-looking statements. Such risks and uncertainties include, but are
not limited to, the factors described in Skilled Healthcare's Annual Report on
Form 10-K for the year ended December31, 2012 filed with the Securities and
Exchange Commission (including the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" contained therein) and in its subsequent reports on Form 10-Q and
Form 8-K. Furthermore, there can be no assurance that the Company will
ultimately be approved for or close any HUD-insured loans, what the timing of
any approvals or closings would be, or what the actual interest rates on any
HUD-insured loans would be. The HUD loan approval process is subject to a
number of contingencies, many of which are out of our control.

Any forward-looking statements are made only as of the date of this release.
Skilled Healthcare disclaims any obligation to update the forward-looking
statements. Investors are cautioned not to place undue reliance on these
forward-looking statements.

Investor Contact:
Skilled Healthcare Group, Inc.
Dev Ghose or Chris Felfe
(949) 282-5800

SOURCE Skilled Healthcare Group, Inc.

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