Skilled Healthcare Group Announces Initial HUD Loan Fundings

         Skilled Healthcare Group Announces Initial HUD Loan Fundings

PR Newswire

FOOTHILL RANCH, Calif., Sept. 20, 2013

FOOTHILL RANCH, Calif., Sept. 20, 2013 /PRNewswire/ --Skilled Healthcare
Group, Inc. (NYSE: SKH) today announced the funding of its first loans insured
by the U.S. Department of Housing and Urban Development (HUD). The loans have
a combined principal balance of $21.6 million and are secured by three skilled
nursing facilities. The HUD insured loans have an all in interest rate of
approximately 4.6% and amortization terms of 30 to 35 years. The net loan
proceeds of $20.4 million will be used to pay down outstanding term debt in
the Company's senior secured credit faciity, which has a maturity date of
April 2016 and an all in interest rate of approximately 6.8%. Loans from
current loan commitments that would be secured by an additional seven
facilities in the amount of $66.0 million with an all in interest rate of
approximately 5.7% are expected to close before the end of the year. "We are
pleased to have finally closed our initial loans under the HUD program. These
loans strengthen our capital structure and also improve our leverage ratio,
which is a metric under our senior secured credit facility comparing earnings
to debt that we must maintain below an agreed level," said Boyd Hendrickson,
Chairman and Chief Executive Officer of Skilled Healthcare Group. "HUD also
recently informed us that they will require an update of our corporate credit
review from 2012 before issuing further commitments. We hope to initiate that
update by the fourth quarter of 2013 or early 2014, and look forward to
pursuing additional HUD-insured loans as quickly as possible. The required
update will not affect any of our current loan commitments from HUD,"
continued Mr. Hendrickson.

About Skilled Healthcare Group, Inc.

Skilled Healthcare Group, Inc., based in Foothill Ranch, California, is a
holding company with subsidiary healthcare services companies, which in the
aggregate had trailing twelve month revenue of approximately $868 million and
approximately 15,000 employees as of June 30, 2013. Skilled Healthcare Group
and its wholly-owned companies, collectively referred to as the "Company,"
operate long-term care facilities and provide a wide range of post-acute care
services, with a strategic emphasis on sub-acute specialty health care. The
Company operates long-term care facilities in California, Iowa, Kansas,
Missouri, Nebraska, Nevada, New Mexico and Texas, including 74 skilled nursing
facilities that offer sub-acute care and rehabilitative and specialty health
skilled nursing care, and 22 assisted living facilities that provide room and
board and social services. In addition, the Company provides physical,
occupational and speech therapy in Company-operated facilities and
unaffiliated facilities. Furthermore, the Company provides hospice and home
health care in Arizona, California, Idaho, Montana, New Mexico and Nevada. The
Company leases 5 skilled nursing facilities in California to an unaffiliated
third party operator. More information about Skilled Healthcare is available
at www.skilledhealthcaregroup.com.

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
current and contemplated HUD financing opportunities and the timing of our
corporate credit review update. These forward-looking statements are based on
current expectations and projections about future events, including the
assumptions stated in this release. 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.
There can be no assurance that any future HUD financing or our corporate
credit review update will be completed in the timeframe or on the terms
anticipated by the Company, or at all. Additionally, the Company faces a
number of other risks and uncertainties, including, but not limited to, the
factors described in Skilled Healthcare's Annual Report on Form 10-K for the
year ended December 31, 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 our subsequent reports on Form 10-Q and Form 8-K. 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.
Chris Felfe
(949) 282-5800

SOURCE Skilled Healthcare Group, Inc.

Website: http://www.skilledhealthcaregroup.com
 
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