Beverly Completes Sale of Florida Operations.Business Editors & Health/Medical Writers FORT SMITH, Ark.--(BW HealthWire)--Jan. 8, 2002 Beverly Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange :BEV) today announced that it has completed the previously announced sale of 49 skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. and four assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. centers in Florida to FC Properties for $165 million. Principal financing for the purchaser is being provided by Salomon Brothers
Salomon Brothers was a Wall Street investment bank. Realty Corp. Beverly will provide $15.5 million in secured financing as part of the transaction. Effective December 1, 2001, Beverly leased these facilities to Florida Health Care Properties, which will continue to operate them under a subsequent leasing arrangement with FC Properties. Beverly will use the proceeds from the sale to pay approximately $50 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. obligations and $44 million of off-balance-sheet financing Off-Balance-Sheet Financing A way of raising money that does not appear on the balance sheet. Notes: This is unlike loans, debt and equity, which do appear on the balance sheet. arrangements relating to these Florida operations. The remainder will be used to reduce other secured long-term debt or for other corporate purposes. As previously announced Beverly is expected to record special charges against fourth quarter 2001 earnings for closing and other costs related to the Florida transaction. Beverly Enterprises and its operating subsidiaries comprise a leading provider of healthcare services to the elderly in the United States. They operate 471 skilled nursing facilities, as well as 29 assisted living centers, 56 home care and hospice agencies and 160 outpatient therapy clinics. Through AEGIS Therapies, they also offer rehabilitative services on a contract basis to nursing homes operated by other care providers. |
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