Extendicare Sells Six Florida Facilities For US$40.5 Million.
MARKHAM, Ontario--(BUSINESS WIRE)--Dec. 30, 1999
(TSE/ME: EXE and EXE.A; NYSE: EXE.A)
Extendicare Inc. today announced that its wholly owned U.S. subsidiary, Extendicare Health Services, Inc., has sold the shares of Florida 6 Health Care Facilities, Inc. to Tandem Health Care, Inc. of Moon Township, Pennsylvania for US$40.5 million. The transaction closed on December 30, 1999. Florida 6 Health Care Facilities, Inc. owns and operates six nursing homes in the State of Florida.
Net proceeds and any tax benefits realized from the sale will be used to pay down debt under the Corporation's term credit facilities. At December 30, 1999 US$27.1 million was used to pay down the Corporation's term debt. The six nursing homes represent 763 beds, which have operated under the Arbor name. Under the terms of the transaction, Extendicare retains the right to the Arbor name.
"As stated previously, a number of facilities that do not fit the Corporation's long-term plans are for sale," said Dr. Joy D. Calkin, Deputy Chairman and Chief Executive Officer. "These assets do not meet our performance criteria or are not strategic to the achievement of our goals. The divestiture of such facilities and the reduction of debt best serve Extendicare's interests. While the year-end audit has not been completed, we believe that the Corporation remains in compliance with the financial covenants in its bank credit facilities and other debt obligations."
Extendicare is one of the largest operators of long-term care facilities in North America. The Corporation operates 298 facilities, with capacity for 29,600 residents and employs approximately 39,000 people in the United States and Canada. Extendicare also provides medical specialty services in the United States, including subacute care and rehabilitative therapy services, as well as home health care and rehabilitative therapy services in Canada.
Statements contained in this release that are not historical facts are forward-looking statements. Such forward-looking statements are necessarily estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Factors that could affect the accuracy of such forward-looking statements include the risks and uncertainties concerning the implementation and interpretation of health care reform legislation and other factors set forth in the Corporation's filings with Canadian and U.S. securities regulatory authorities. Forward-looking statements contained in this release or in other public statements should be considered in light of these factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
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|Date:||Dec 30, 1999|
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